Total construction spending increased 0.8% from October to November, reaching $1.257 trillion, according to the Commerce Department. The record high was driven by investment in private residential and non-residential projects, as total private construction increased from the prior month by 1.0%.
Economists polled by Reuters expected an increase of 0.5%. Total construction spending increased 2.4% year over year from $1.227 trillion in November 2016.
The strong report suggests that fourth-quarter gross domestic product (GDP) estimates could be revised higher. Currently at just below a 3.0% annualized growth rate, GDP grew at 3.2% pace in the third quarter.