Construction spending ticked up 1.1% in October from the month before, printing at a seasonally adjusted annual rate of $971.0 billion, reversing a two-month decline.
The October figure is 3.3% above the October 2013 estimate of $939.9 billion, according to the U.S. Census.
This was the highest month-on-month gain since May 2014, and driven largely by double-digit spikes in government construction projects, including public safety and health care spending.
During the first 10 months of this year, construction spending amounted to $800.6 billion, 5.8% above the $756.5 billion for the same period in 2013.
Residential construction was at a seasonally adjusted annual rate of $353.8 billion in October, 1.3% above the revised September estimate of $349.1 billion.
Spending on private construction was at a seasonally adjusted annual rate of $692.4 billion, 0.6% above the revised September estimate of $688.0 billion.
Nonresidential construction was at a seasonally adjusted annual rate of $338.6 billion in October, 0.1% below the revised September estimate of $338.9 billion.
In October, the estimated seasonally adjusted annual rate of public construction spending was $278.6 billion, 2.3% above the revised September estimate of $272.3 billion.
Construction spending unexpectedly declined in September on public outlays and somewhat on the private nonresidential component. Private residential spending was a positive for the month. Construction spending declined 0.4% in September after a 0.5% decrease in August.
September's decrease was led by public outlays which fell 1.3% after a 1% drop in August. Private nonresidential spending dipped 0.6%, following an easing of 0.3% the month before. On a positive note, private residential construction spending rebounded 0.4%, following a decrease of 0.3% in August.
And strength was in the new one-family component which advanced 1.1% in September, following a 1.2% gain the month before.