U.S. construction spending increased in January by the largest amount in eight months as weakness in homebuilding was offset by a solid rebound in nonresidential activity.

The Commerce Department says construction spending increased 1.5 percent in January, the biggest gain since May, following a 0.6 percent increase in December. The advance pushed total spending to a seasonally adjusted $1.14 trillion in January, the highest level in more than eight years.

Economists are optimistic that construction will continue to show solid gains this year, helping to boost overall economic growth.

For January, home building activity showed no gain, but spending on nonresidential projects rose 1 percent following two months of declines. Spending on government projects increased 4.5 percent with state and local and federal spending both showing gains.