U.S. construction spending was unchanged in July as weakness in spending on government projects offset gains in home building and the strongest month for non-residential construction on record.

The Commerce Department says construction spending was flat in July but declines in May and June were revised to show slight gains. Spending in June is now reported up 0.9 percent while May showed an increase of 0.1 percent.

The advance in July was led by a 1.7 percent increase in spending on non-residential projects which rose to an all-time high of $429.5 billion at a seasonally adjusted annual rate. Office building and shopping centers both showed solid gains.

Residential construction increased 0.3 percent in July but spending on government projects fell 3.1 percent, the fourth drop in the past five months.