RPT-U.S. construction spending rose 0.2 pct in August

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WASHINGTON, Sept 28 (Reuters) - U.S. construction spending rose a surprising 0.2 percent in August, reversing two months of declines as gains in non-residential building exceeded continuing declines in the private residential sector, a government report showed on Friday.

Analysts polled by Reuters were expecting construction spending to slip 0.2 percent in August. The seasonally adjusted annual rate of construction rose to $1.17 trillion while private residential construction took its 18th straight drop, this time by 1.5 percent, to hit an annual rate of $522 billion, the lowest since November 2003.

Private construction was virtually unchanged, registering an annual rate of $876 billion.

Private non-residential construction rose 2.3 percent to an annual rate of $353 billion, a record high. Public construction also increased, rising 0.7 percent to $291 billion and its highest level on record.