WTOP Radio reported today that U.S. construction spending in July climbed to its highest level since May 2008.

The Commerce Department said Tuesday that construction spending rose 0.7 percent to a seasonally adjusted annual rate of $1.08 trillion, the highest level since May 2008. The report also revised up the June increase in construction spending to 0.7 percent from 0.1 percent previously.

Ground breakings for houses, apartment complexes and commercial centers have helped to improve overall economic growth. The government said last week that the U.S. economy expanded at an annual rate of 3.7 percent in the April-June quarter, after having edged up just 0.6 percent in the first quarter.

The increased activity is a result of housing starts; and the building of factories and power plants.

In July, construction of single-family houses advanced 2.1 percent. Factories rose 4.7 percent, and power facilities increased 2.1 percent.

While government projects fell slightly, they have risen over the past year due to the construction and maintenance of roadways.