The Commerce Department said on Monday construction spending increased 1.0 percent to a nine-month high after an upwardly revised 2.5 percent climb in January (originally a 1.3 percent m-o-m surge).

Economists had forecast construction spending declining 0.3 percent m-o-m in February.

On a y-o-y basis, construction spending rose 1.1 percent in February.

According to the report, investment in public construction surged 3.6 percent m-o-m, led by federal government construction projects and state and local government construction outlays. Meanwhile, spending on private construction rose 0.2 percent m-o-m, as an increase in spending on private residential projects more than offset a drop in spending on private nonresidential structures.