The value of construction put-in-place recovered 1.1% (3.3% y/y) during October following a 0.1% September slip, revised from -0.4%. Despite the latest gain, forward momentum continued to fade. The increase exceeded expectations for a 0.6% rise in the Action Economics Forecast Survey.

Private sector construction outlays increased 0.6% in October and y/y growth improved to 4.0%. Residential building activity gained 1.3% (1.9% y/y) but remained 2.8% below the January peak. Single-family building grew 1.8% (13.2% y/y) and multi-family building increased 1.0% (27.2% y/y). Spending on improvements rose 0.6% (-19.2% y/y), the first monthly gain since December. Nonresidential building activity slipped 0.1% (+6.4% y/y). A 2.6% decline (+9.3% y/y) in commercial building offset a 0.8% gain (20.9% y/y) in office building. Educational building was roughly unchanged (-5.2% y/y) but amusements & recreation construction jumped 1.0% (-5.2% y/y).

Building in the public sector recovered 2.3% (1.5% y/y) following two months of decline. The rise lifted activity 6.9% from its December low. A 2.4% rise (+1.8% y/y) in nonresidential building reflected an 8.1% increase (-2.0% y/y) in office construction. Educational building gained 2.2% (6.1% y/y) and highways & streets construction improved 1.1% (-0.1% y/y).

The construction spending figures are in Haver's USECON database and the expectations figure is contained in the AS1REPNA database.