A non-manufacturing benchmark shows service providers unexpectedly expanded in October at the second-fastest pace in a decade.
The 0.6% increase in overall spending in September was fueled by a 4.9% jump in construction of apartments and condominiums.
With income, consumption, and inflation trending lower, the prospects for an interest-rate hike next month may be dimming.
The third-quarter numbers from the Commerce Department show a reduction in business inventories but a robust increase in consumer spending.
After its latest policy meeting, the central bank downplays recent financial market turmoil and drops warnings of global economic fragility.
The sharp drop in sales of newly built home suggests one segment of the market is cooling, but sales of existing homes rose 4.7%.
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U.S. sales grew for the first time since 2013, increasing 0.9%.
While respondents to a quarterly survey continue to be concerned about defaults, the outlook for credit spreads is decidedly mixed.
The latest GDP reading is the worst in nearly seven years and increases pressure on Beijing to stimulate the economy.