a home under construction stands behind a sold sign in a new development in york county south carolina us february 29 2020 reuterslucas jacksonfile photo washington dec 1 reuters  us construction spending rebounded less than expected in october as a decline in homebuilding blunted a surge in outlays on public projects the commerce department said on wednesday that construction spending gained 02 after dipping 01 in september economists polled by reuters had forecast construction spending rising 04 construction spending increased 86 on a yearonyear basis in september spending on private construction projects slipped 02 in october after falling 01 in september outlays on residential construction dropped 05 after slipping 02 in september singlefamily homebuilding spending declined 08 and outlays on multifamily housing projects fell 01 shortages and more expensive building materials are holding back homebuilding residential investment contracted for a second straight quarter in the third quarter weighed down by decreases in home improvements and singlefamily homebuilding investment in private nonresidential structures like gas and oil well drilling rose 02 in october spending on structures declined for a second straight quarter in the julyseptember period led by commercial and healthcare structures spending on public construction projects shot up 18 in october after dipping 01 in september outlays on state and local government construction projects jumped 09 while federal government spending accelerated 146