Construction spending rose 4.5 percent in the 12 months ended in April before adjusting for seasonal variations. The growth was based in an increase of private projects, as public construction spending dipped to the lowest rate since October 2006 in April.

Construction outlays climbed in April, supported by growth in private building even as public spending slumped.

The annual spending rate on construction increased 0.4 percent to $860.8 billion in April, the Commerce Department reported June 3. Private construction projects rose 1.0 percent from March to April, reaching the highest spending level since December 2012. Spending on public projects dropped to the lowest level since October 2006, down 1.2 percent after declining by a downwardly revised 2.9 percent in the previous month.

A pickup in the housing market may be helping the overall economy, as sales of new properties advanced 2.3 percent in April to an annualized pace of 454,000 homes. The pace was the second fastest since July 2008, the Commerce Department reported in May.

Residential spending fell 0.1 percent to a $301.9 billion annualized pace. Private non-residential projects rose 2.2 percent.

The improving fortunes for construction may have affected first-quarter growth estimates released last week. Gross domestic product rose at a 2.4 percent annualized rate in the first quarter, revised from the 2.5 percent pace previously reported, according to the latest federal release on GDP.