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Construction spending still rising

In August, construction activity in the United States climbed to the highest level in more than four years.

J. David Ake/Associated Press

In August, construction activity in the United States climbed to the highest level in more than four years.

WASHINGTON — Spending on US construction projects rose at a solid pace in August, helped by further gains in residential building. Overall construction activity climbed to the highest level in more than four years.

Construction spending increased 0.6 percent in August compared with July, when spending increased a strong 1.4 percent, the Commerce Department reported Tuesday.

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The July gain was revised to show an increase that was more than double the initial estimate.

Total construction rose to a seasonally adjusted annual rate of $916.1 billion, the fastest pace since April 2009. The strength in construction should help the overall economy.

The August gain reflected a solid rise in housing activity, which was up 1.2 percent.

Nonresidential construction rose a slight 0.1 percent in August after a much stronger 3.7 percent July advance.

Spending on government projects rose 0.4 percent, reflecting a 0.8 percent increase in state and local government activity. That offset a 3.8 percent drop in spending on federal projects, which fell to their lowest level since June 2008.

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