US construction spending in July climbed to its highest level in more than seven years, boosted by an increase in the building of houses, factories and power plants.
The Commerce Department says construction spending rose 0.7 per cent to a seasonally adjusted annual rate of $US1.08 trillion ($A1.52 trillion), the highest level since May 2008.
Tuesday's report also revised up the June increase in construction spending to 0.7 per cent from 0.1 per cent previously.
Construction of single-family houses advanced 2.1 per cent in July. Factories rose 4.7 per cent, and power facilities increased 2.1 per cent. Spending on government building projects slipped 1 per cent.
Total construction spending has risen 13.7 per cent over the past 12 months.