Total U.S. construction spending rose 0.8 percent in April, the biggest one-month increase since August 2008, and was led by a jump in both private and residential construction.

A Bloomberg survey of 45 economists had projected a median drop of 1.5 percent.

The Commerce Department’s report from the Census Bureau says spending on private construction was at a seasonally adjusted annual rate of $657.3 billion, up 1.4 percent from the revised March estimate of $648.2 billion.

Residential construction rose 0.7 percent to a seasonally adjusted annual rate of $249.2 billion. Nonresidential construction rose 1.8 percent to an annual rate of $408.2 billion.

Total public construction fell in April, although spending on highway projects rose nearly 1 percent from the previous month.

A separate report from the Commerce Department last week showed construction of single-family homes rose 2.8 percent in April, the second consecutive monthly increase.

Gains in single-family construction were overwhelmed by a 46 percent drop in apartment and condo buildings, bringing total housing starts down 13 percent in April.

Source: The Business Journal