ECONOMY

US construction spending falls 0.4 percent in September, second straight monthly drop

In this Oct. 8, 2014 photo, construction cranes are silhouetted against the early morning sky as work continues on Smithsonian's new National Museum of African American History and Culture in Washington. The Commerce Department releases construction spending for September on Monday, Nov. 3, 2014. (AP Photo/J. David Ake)

In this Oct. 8, 2014 photo, construction cranes are silhouetted against the early morning sky as work continues on Smithsonian's new National Museum of African American History and Culture in Washington. The Commerce Department releases construction spending for September on Monday, Nov. 3, 2014. (AP Photo/J. David Ake)  (The Associated Press)

U.S. construction spending fell for a second straight month in September as a slight rebound in housing was offset by further declines in nonresidential building and in government projects.

The Commerce Department says construction spending dropped 0.4 percent in September compared to August when spending fell 0.5 percent.

After four straight monthly declines, housing construction edged up 0.4 percent in September but nonresidential building fell 0.6 percent with weakness in construction of hospitals, power plants and factories.

Government construction was also down, falling 1.3 percent as spending on projects at the federal and state and local levels declined.

The overall declines in the past two months were disappointing but economists say the weakness will be temporary. They are looking for construction activity to support economic growth in coming months.