Construction spending in October was 1 percent higher than September, and 13 percent better than the same month in 2014, according to U.S. Census Bureau data.

Total construction spending in October topped $1.1 trillion and was 1.0 percent higher than September, and 13 percent better than the recorded rate in October 2014.

U.S. Census Bureau construction spending data is broken down into private and public construction. Privately-funded construction in October came to $802.4 billion, an increase of 0.8 percent over September. Also under the private sector, residential construction, at $399.0 billion, was 1.0 percent above the September pace. Private nonresidential construction, at $403.4 billion, was up 0.6 percent over September.

In public sector spending, the October pace of $304.9 billion was 1.4 percent higher than September. Of that, $69.2 billion was spent on education facilities, virtually unchanged from September. Highway construction was at $94.1 billion, 1.1 percent above September's $93.1 billion.

Census Bureau

The National Association of Home Builders said the private single-family spending, at $226 billion, was up 1.6 percent on a month-over-month basis. Private multifamily spending increased to $58 billion, up 1.4 percent compared to September.

On a year-over-year basis, multifamily spending increased 28 percent and single-family building was 11 percent higher, the NAHB said.

Data shows that the recent gains in construction spending have been driven mostly by the multifamily sector. But spending on apartments and other multifamily type projects is slowing, the NAHB said. The multifamily growth rate fell to 1.4 percent in October, from higher rates in August (8 percent) and September (6 percent).

Nonresidential spending went up by 1 percent on a monthly basis, and is up 11 percent compared to October 2014. The manufacturing sector contributed mightily to this trend, as it was up 41 percent year-over-year, followed by lodging, up 30 percent, and amusement-recreation, 24 percent higher.

National Association of Home Builders

Slight Gain in October Pending Home Sales
Driven by a fairly sizable gain in the Northeast, pending homes sales in the nation overall climbed a scant 0.2 percent in October.

Pending sales in the Northeast jumped 4.5 percent to help the Pending Homes Sales Index (PHSI) improve to 107.7, up from 107.5 in September, according to the National Association of Realtors.

The PHSI, based on contract signings and pending sales of existing homes, has now risen year-over-year for 14 consecutive months.

By region, the Northeast's PHSI reading went up to 93.6 in October, while the West increased 1.7 percent to 106.2. However, the Midwest dropped 1.0 percent to 103.9, while the South declined 1.7 percent to 118.1.

"Contract signings in October made the most strides in the Northeast, which hasn't seen much of the drastic price appreciation and supply constraints that are occurring in other parts of the country," said Lawrence Yun, chief economist for the NAR. "In the most competitive metro areas "?u particularly those in the South and West "?u affordability concerns remain heightened as low inventory continues to drive up prices."

Yun said he expects demand to remain stable through the rest of 2015, and predicts existing home sales will finish the year at about 5.30 million units. If sales do in fact reach that target, the pace would be the highest since 2006.

"Although further expansion in existing-sales is expected next year, ongoing inventory shortages and affordability pressures from rising prices and mortgage rates will likely temper sales growth to around 3 percent (5.45 million) in 2016," Yun said. "Home prices are expected to slightly moderate from a 6 percent increase in 2015 to 5 percent next year."

The NAR also said home prices and rents might continue to exceed most people's wages in 2016, unless the supply side of the housing market makes substantial gains in the year ahead. Otherwise, this trend will "hamstring" many potential buyers who want to buy new homes, Yun said.

National Association of Realtors