U.S. construction exceeded expectations, rising 0.4% in October, Reuters reports.
The rise was driven by a 1.5% increase in residential investment, particularly single-family homes.
The growth occurred despite mortgage rates climbing to 6.72% by month-end, fueled by higher 10-year Treasury yields amid strong economic data signaling a slower Fed rate cut.
Private non-residential spending fell 0.3%, led by declines in commercial and health care projects.
Public construction spending dropped 0.5%, with state and local spending down 0.6%, outweighing a slight federal increase. Overall, construction spending increased 5% year-over-year in October.
