U.S. construction spending increased more than expected in May as a severe shortage of houses for sale boosted outlays on single-family homebuilding.

The Commerce Department said on Monday that construction spending rose 0.9% after gaining 0.4% in April.

Economists polled by Reuters had forecast construction spending increasing 0.6%. Construction spending advanced 2.4% on a year-on-year basis in May.

Spending on private construction projects jumped 1.1%, with investment in residential construction rebounding 2.2% after dropping 0.9% in the prior month. Private construction spending had risen 0.4% in April. Spending on single-family housing projects accelerated 1.7% in May.

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