ECONOMY

US construction spending rebounds 1.8 percent in July, biggest gain in more than 2 years

In this photo taken July 22, 2014, a construction worker is seen on a 36 floor high rise condominium in Miami. The Commerce Department reports on U.S. construction spending in July on Tuesday, Sept. 2, 2014. (AP Photo/Alan Diaz)

In this photo taken July 22, 2014, a construction worker is seen on a 36 floor high rise condominium in Miami. The Commerce Department reports on U.S. construction spending in July on Tuesday, Sept. 2, 2014. (AP Photo/Alan Diaz)  (The Associated Press)

U.S. construction spending staged a strong rebound in July, rising by the largest amount in more than two years. All major categories of construction showed gains in an encouraging sign that spending on building projects will help boost the economy in the second half of this year.

The Commerce Department says construction spending rose 1.8 percent in July, the biggest one-month gain since May 2012. It followed a 0.9 percent decline in June, the largest setback in a year. That decline had been blamed in part on soggy weather which depressed construction activity in many parts of the country.

The July rebound pushed total construction to a seasonally adjusted annual rate of $981.3 billion, the highest level since December 2008. Spending on housing, non-residential and government projects all increased.