Construction spending posts big increase

WASHINGTON (AP) -- Construction spending jumped 2.4 percent in September, the biggest gain in 10 months, led by strong increases in spending for home remodeling, office buildings and government projects.

The Commerce Department said the increase, which followed a hefty 1.8 percent gain in August, pushed spending to a seasonally adjusted annual rate of $819.3 billion, the second highest level on record.

The increase was more than four times the 0.5 percent gain that economists had been predicting and should add to the debate over how much the economy is actually slowing.

The stock market rallied in recent days.