WASHINGTON—U.S. construction spending unexpectedly rebounded in November, lifted by gains in nonresidential structures, but single-family homebuilding continued to be hammered by higher mortgage rates.
The Commerce Department said on Tuesday that construction spending climbed 0.2 percent in November after falling 0.2 percent in October.
Economists polled by Reuters had forecast construction spending would decrease 0.4 percent. Construction spending increased 8.5 percent on a year-on-year basis in November.
Spending on private construction projects advanced 0.3 percent after declining 0.7 percent in October.
Investment in private non-residential structures like gas and oil well drilling jumped 1.7 percent.
But outlays on residential construction fell 0.5 percent, with spending on single-family housing projects plunging 2.9 percent. Outlays on multi-family housing projects increased 2.4 percent, benefiting from strong demand for rental housing….