US construction spending up 0.5 per cent in October
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WASHINGTON — U.S. builders boosted spending on construction projects by a modest amount in October, helped by big gains in spending on home construction and the biggest increase in government projects in 10 months.
Construction spending rose 0.5
Home construction increased 1.6
Financial markets have rallied since the election of Donald Trump, reflecting in part enthusiasm over his vows to increase spending on projects to repair and replace the country's aging infrastructure.
Despite the advance in government projects, spending in the category is still down 0.6
Trump's plans for increased infrastructure are expected to be revealed when he sends his first budget to Congress early next year.
President Barack Obama sought for a number of years to get Congress to approve higher infrastructure spending, but he was blocked by opposition from Republicans who complained that the projects would increase budget deficits. Democrats in Congress have already expressed support for Trump's proposals to boost construction spending. His ideas, however, may still face opposition from Republicans worried about high deficits.
The October rise in spending pushed overall construction spending to a seasonally adjusted annual rate of $1.17 trillion, up 3.4