The U.S. factory sector grew more than expected in July, heralding a strong start for the economy in the third quarter, while June housing data presented a mixed picture.

On Monday, the Institute for Supply Management’s factory survey index rose to 56.6 in July from 53.8 in June. Economists had called for the index to come in at 54.5.

The prices paid index of the ISM report fell to 48.5 in July from 50.5 in June, marking the end of 40 consecutive months of higher prices.

The ISM’s new orders index, a signal of future growth, rose to 60.6 from 57.2 in June.

Meanwhile, U.S. construction spending fell 0.3% in June, the fourth consecutive monthly drop. Outlays fell to a seasonally adjusted annual rate of $1.093 trillion, government data showed.

Analysts were expecting a 0.5% gain in June.