September construction spending rises 0.5 percent

Construction spending, after having fallen to the lowest level in a decade, edged up slightly in September as a gain in residential activity and government projects helped offset weakness in commercial projects.

The Commerce Department says spending on building projects rose 0.5 percent in September after having fallen 0.2 percent in August to the lowest point since July 2000.

Even with the small September gain, construction activity remains 34 percent below the peak hit in 2006 when builders were enjoying a boom in residential housing. That boom turned into a bust that helped drag the country into a severe recession.