US construction spending increased in January by the largest amount in eight months as weakness in homebuilding was offset by a solid rebound in nonresidential activity.

Construction spending increased 1.5 per cent in January, the biggest gain since May, following a 0.6 per cent increase in December, the Commerce Department has reported. The advance pushed total spending to a seasonally adjusted $US1.14 trillion ($A1.60 trillion) in January, the highest level in more than eight years. Economists…