WASHINGTON, Sept. 28 (Xinhua) -- Construction spending in the United States rose by 0.2 percent in August, much better than the 0.2 percent decline expected by analysts, the Commerce Department reported Friday.

    The 0.2 percent gain pushed total construction spending in August to a seasonally adjusted annual rate of 1.166 trillion dollars, or 1.7 percent lower than the same month last year.

    For August, spending on private construction was at a seasonally adjusted annual rate of 875.5 billion dollars, nearly the same as the revised July estimate of 875.4 billion dollars.

    Of that, residential construction decreased by 1.5 percent, marking the 18th straight month in which this spending declined, to a seasonally adjusted annual rate of 522.1 billion dollars.

    Nonresidential construction spending, such as offices, hotels and motels, and schools, however, increased by 2.3 percent to a seasonally adjusted annual rate of 353.4 billion dollars. The 2.3 percent gain was the biggest in this category in six months.

    Construction spending by the government rose by 0.7 percent in August to a seasonally adjusted annual rate of 291.2 billion dollars.

    Education construction advanced by 1.3 percent to a seasonally adjusted annual rate of 83.9 billion dollars. Highway construction was up 0.8 percent to a seasonally adjusted annual rate of 75.3 billion dollars.

    According to revised estimates, U.S. construction spending fell by 0.5 percent in July and 0.1 percent in June.

    The once-sizzling U.S. housing market has slowed significantly since last year. The current housing slump, the worst in 16 years, is expected to continue amid a widening credit crisis stemming from troubles in the U.S. subprime mortgage market, where loans are given to homebuyers with weak credit histories.