Construction spending rose 1.4% in October the Commerce Department said.
The increase brought outlays up to $872.1 billion, the most since September 2009 and followed a revised 0.5% decrease in September, that was smaller than previously estimated, Commerce said.
Economists had forecast a 0.5% increase, Bloomberg reported.
Private construction spending increased 1.6%, while homebuilding outlays rose 3% to 294.2 billion.
Public construction increased 0.8% from the prior month.
Separately, Commerce announced that new home sales fell 0.3% in October, to an annual rate of 368,000 homes. Purchases rose 62.2% in the Midwest to the highest level in three years, and increased 8.8% in the West. Sales dropped 32.3% in the Northeast.