U.S. construction spending increased in July as a shortage of houses on the market boosted outlays on single-family housing projects.

The Commerce Department reported that construction spending rose 0.7%. Data for June was revised slightly higher to show construction spending increasing 0.6% instead of 0.5% as previously reported.

Construction spending on multifamily housing projects gained 0.2% in July. Spending on private non-residential structures like factories rose 0.5% in July. Spending on manufacturing construction projects accelerated 1.1%.