Construction spending posted its biggest increase in a year in February as builders took advantage of Americans’ strong demand for new homes.

The Commerce Department reported Monday that spending on construction projects grew by a bigger-than-expected 1.1 percent in February. Many analysts were forecasting a smaller, 0.6 percent rise.

It was the third straight monthly rise.

Virtually all of the strength came from increased spending on residential construction, which rose 3.5 percent, especially single-family homes.

Despite the recession that began in March 2001, home sales hit record highs last year. Buyers snapped up both new and existing homes, motivated not only by low mortgage rates but also by increases in home values, especially as the stock market swooned.

Even as mortgage rates have crept up over the last four weeks, home sales have remained at solid levels.

The 1.1 percent increase in construction spending in February matched the rise recorded in February 2001.

Today's top stories

Florida's Sarasota Bradenton International Airport Sees $105M Terminal Expansion

Louisville Pump Station Receives $230M Update

Rokbak Haul Track Telematics Boost Uptime With Proactive Maintenance

SISO Air, InTerra Form Strategic Reseller Agreement

Hitachi Construction Machinery Wins Silver in 2024 Anthem Award

Balfour Beatty's Carolinas Operations Selected for Over $36M in Special Project Works

Caterpillar to Spotlight 'Next 100 Years' at CES 2025

Liebherr to Exhibit at World of Concrete 2025