The overall economy grew at a 3 percent annual rate in the third quarter, even though residential construction was down for the second straight quarter.

WASHINGTON (AP) — U.S. construction spending increased 0.3 percent in September as the biggest advance in government building activity in four months offset weakness in other areas.

The Commerce Department said Nov. 1 that the September gain followed a tiny 0.1 percent rise in August and declines in June and July.

Despite a slump in homebuilding this year, economists remain optimistic that the low level of unemployment will soon spark a rebound in sales and construction. The overall economy grew at a 3 percent annual rate in the third quarter, even though residential construction was down for the second straight quarter.

All of the strength in this report came from a 2.6 percent increase in government construction with state and local activity up 2.5 percent and federal spending up 3.4 percent.

Residential housing showed no increase, while non-residential construction dropped 0.8 percent, its fourth straight monthly decline.

Overall spending was $1.22 trillion at a seasonally adjusted annual rate, a gain of 2 percent from a year ago.

In the non-residential area, office construction was down 1.1 percent and the category that includes shopping centers was down 1 percent.

Today's top stories

Blalock Crews Build TDOT's $67M Newport Bypass

New Bridges Part of Iowa's $114M Madison Avenue Project

Eagle Bridge Co. Works On Final Leg of U.S. 35 Upgrade

SAKAI Achieves Record Sales, Production

Takeuchi Recognizes Top Dealers at 2024 Dealer Summit

Equip Expo's Summer Giveaway Offers a Chance for Lifetime Trade Show Registration, Gift Card, Hotel Stay

Tennessee's Pugmill Systems LLC Expands Its Product Offerings to Include Concrete Plants

ASCENDUM Machinery Opens New Savannah, Ga., Facility