Highlights
Construction outlays surprisingly jumped in October, rising 0.7 percent, following a 0.7 percent rebound the month before. The market expectation was for a 0.4 percent decrease. Strength was in multifamily housing.

The gain in October was primarily due to a 2.5 percent increase in private residential outlays, following a 0.6 percent increase in September. For the latest month, the multifamily component advanced 3.2 percent while the single-family component slipped 1.2 percent. Also, public outlays increased 0.4 percent after a 1.2 percent boost in September. Meanwhile, private nonresidential spending fell 0.7 percent in October, following a 0.2 percent increase the prior month.

On a year-ago basis, overall construction outlays improved to minus 9.3 percent in October from down 10.9 percent in September.

The improvement in construction outlays was primarily in multifamily housing. While there is little reason to expect improvement in single-family housing due to oversupply on the market and rising foreclosure rates, it is at least a glimmer of hope for construction workers to see a possible uptrend in the multifamily sector.

Market Consensus before announcement
Construction spending rebounded in September, gaining 0.5 percent after a 0.2 percent dip the month before. The boost in September was led by a 1.8 percent increase in private residential outlays, following a 4.2 percent decline in August. Also, public outlays advanced 1.3 percent after a 2.2 percent rise in August. In contrast, private nonresidential spending fell 1.6 percent in September, following a 0.8 percent increase the prior month.

2010 Release Schedule

Released On: 1/4 2/1 3/1 4/1 5/3 6/1 7/1 8/2 9/1 10/1 11/1 12/1 Release For: Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct