WASHINGTON, (Reuters) – The U.S. increased construction spending in November due to strong single-family homebuilding gains. However, public project outlays were low.

According to the Commerce Department, construction spending increased 0.4% Monday after an October similar increase.

Reuters polled economists and found that construction spending was expected to rise 0.6%. The November increase in construction spending was 9.3% compared to the previous year.

In November, spending on private projects increased 0.6%. The 0.9% increase in residential construction expenditures was remarkable.

Spending on single-family homes jumped 1.2% while spending on multifamily housing projects fell 0.3%.

Homebuilding is still constrained due to shortages that are driving up the prices for building materials. The third quarter saw residential investment decline for the second consecutive quarter. This was due to a decrease in single-family homebuilding and home improvement spending.

In November, private structures that are not residential such as oil well drilling and gas exploration saw a 0.1% increase in investment. The July-September period saw a decrease in spending on structures for the second quarter. Healthcare and commercial structures led this decline.

Public construction spending fell by 0.2% in November. The federal government spent 0.4% less on construction projects in November than it did for state- and local government construction projects.