The U.S. Commerce Department is reporting that construction spending climbed 1.3% in September, fueled by another strong month of home building.

Total construction spending came in at a seasonally adjusted annual rate of US$910.6 billion, the Commerce Department said. In dollar terms, this was the highest level on record.


BMO Nesbitt Burns says the construction report shows the U.S. economy has great momentum headed into the fourth quarter. Private construction other than housing was substantially on the upside with a 2.5% gain.

“The strength came from an ongoing boom in residential construction, up 1.4% to the highest level on record,” RBC says. “The impact of low interest rates on housing is old news, but it continues to amaze those that, rightly so, expect the goose to run out of golden eggs at some point.”