US construction spending up slightly 0.1 percent in August

WASHINGTON (AP) — Spending on U.S. construction projects edged up a slight 0.1 percent in August as a strong gain in government spending offset weakness in home building and nonresidential construction.

The Commerce Department said Monday that the rise, which followed a 0.2 percent July increase, put total construction at a seasonally adjusted annual rate of $1.32 trillion. That was down 0.4 percent from a record high set in May.

Residential construction fell 0.7 percent while nonresidential construction edged down 0.2 percent. Those declines were offset by a strong 2 percent rise in public construction, which increased to the highest level since July 2009. Spending for federal and state and local projects increased.

Construction activity is contributing to solid overall growth although home building has faced a number of challenges this year.

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