Construction Spending Rises

Construction spending rebounded somewhat in September, rising an unexpectedly strong 0.5 percent despite rising mortgage rates and a hurricane on the East Coast the same month.

The Commerce Department said today that spending rose to a seasonally adjusted annual rate of $700.1 billion, following a sharp 0.8 percent decline in August.

The increase surprised many analysts. They were forecasting that spending would actually drop 0.2 percent in September.

September’s performance reflected a big jump in spending on big government projects that more than offset a decrease in spending on all private construction, including residential projects.