WASHINGTON (AP) — Spending on U.S. construction projects rose in July, led by strong gains in housing and nonresidential projects.

The Commerce Department says construction spending increased 0.6 percent in July compared with June when activity was unchanged. The June performance represented an upward revision from an initial estimate that spending had fallen 0.6 percent. Total construction activity rose to a seasonally adjusted annual rate of $900.8 billion in July, the strongest performance since June 2009.

The July gain reflected a 0.6 percent rise in housing construction with both single-family and apartment construction posting gains. In June, housing had fallen 0.9 percent.

Government projects fell 0.3 percent in July with state and local spending down 0.4 percent. That drop offset a 1.1 percent rise in the smaller federal category.