The Commerce Department said construction spending rose 1% to the highest level it since December 2007.
Construction spending has risen every month this year.
It has been a bright spot for the economy as manufactures and retailers have struggled against a strong dollar.
Construction spending reached a seasonally adjusted rate of $1.11 trillion (Â£735bn).
US consumer spending in October rose just 0.1% compared with the previous month.
On a less positive note, US manufacturing fell in November according to the Institute for Supply Management (ISM), following a global trend of declining factory activity.
ISM said its factory activity index dipped to 48.6 in November from 50.1 in October. Any number below 50 suggests the market is contracting.
Both new orders and production declined but hiring by manufactures was on the rise.
Along with the strong dollar, a weakening economy in China has hurt manufacturing this year.
US construction spending reached an eight-year high in October, suggesting the economy is performing better than consumer spending has indicated.