U.S. construction spending rose 0.2% in July, reaching its highest overall level since January. Total construction spending came in at a seasonally adjusted annual rate of US$879.83 billion, the U.S. Commerce Department said Wednesday.

The report showed strength in private building and residential construction, but public construction spending fell.

Despite the increase, the July construction numbers were a touch weaker than the 0.3% economists had expected. However, June numbers were revised upward, with construction spending increasing by 0.7%, compared with the previously reported 0.3% rise.