U.S. builders trimmed spending on construction projects in August for a second straight month with housing, non-residential and government activity all seeing declines.

The Commerce Department says construction spending dropped 0.7 percent in August after a 0.3 percent slip in July. It was the third decline in the past five months.

Residential construction decreased 0.3 percent, while non-residential activity was down 0.4 percent. Spending on government projects fell 2 percent, dragged down by a sharp drop in activity at the state and local level, which has fallen to the lowest point since March 2014.

Economists believe that the slowdown in construction will be temporary, with ultra-low interest rates and a growing economy prompting greater building activity in coming months.