The report said construction spending climbed 1.0 percent to an annual rate of $1.107 trillion in October from the revised September estimate of $1.097 trillion.
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The report said total construction spending in October was up by 13.0 percent compared to the same month a year ago.
The Commerce Department said construction spending rose 1% to the highest level it since December 2007. Outlays on private residential construction gained 1 percent and hit their highest level since December 2007, reflecting increases in home building and renovations.
More Americans are buying new homes or renting apartments, driving greater residential development.
USA manufacturing contracted in November for the first time in three years as the sector buckled under the weight of a strong dollar and deep spending cuts by energy firms, but robust automobile sales suggested the economy remained on solid ground.
Spending on state and local government construction projects, which is the largest portion of the public sector segment, slipped 0.1 percent. And federal government building soared 19.2 percent, the biggest increase since October 2006. That spurred a almost 28 percent jump in apartment and condo construction in October from a year earlier.
Homebuilding rose 1 percent during the month as well to $400 billion.
Private residential construction spending rose 1.02% in October, according to a Value of Construction Put in Place Survey released by the Commerce Department.
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In the public sector, seasonally adjusted total spending rose 1.4%, compared with September, and 6.1% compared with October 2014.
