SILVER SPRING, Maryland (AP) — US construction spending rose 0.3 per cent in September, the fourth-straight monthly gain after a coronavirus-related spring swoon, although a smaller gain than analysts had expected.

The Commerce Department reported yesterday that the September gain follows a downward revised gain of 0.8 per cent in August. Spending on residential construction was strong yet again, with single-family home projects jumping 5.7 per cent.

Demand for single-family homes remains healthy as buyers rush to the market pushed by historically low interest rates under three per cent. A lack of existing homes for sale has builders rushing to fill the void with newly constructed houses.

Total residential construction was up 2.7 per cent, with total private construction up 0.9 per cent.

Spending on Government construction projects fell 1.7 per cent with declines everywhere except health care facilities, schools and waste disposal sites. Government spending on projects related to public safety and streets and highways both shrunk by more than 5 per cent.

Spending on public projects has been expected to fall as the state and local Governments collect less tax revenue from individuals and businesses because of the economic effects of coronavirus and related closures.

Spending on non-residential private construction fell by 1.5 per cent, with churches and offices the only categories to see growth.

During the first nine months of 2020 construction spending was up 4.1 per cent over the same period last year.