WASHINGTON, (Reuters) – The U.S. saw a surge in construction spending during January due to strong investments on single-family homes and nonresidential private structures.

According to the Commerce Department, construction spending rose by 1.3% on Tuesday. The Commerce Department revised the December data to reflect construction spending rising 0.8% rather than 0.2%, as reported previously.

Reuters polled economists to predict that construction spending will rise by 0.2%. In January, construction spending grew 8.2% year-over-year.

In January, spending on private projects jumped 1.5%. The 1.3% increase in residential construction expenses was due to an increase of 1.3%.

Spending on single-family homes increased 1.2% while spending on multifamily housing projects fell 0.1%.

Even with January’s rise, homebuilding is still constrained by rising prices of building materials and framing lumber. After a thorough review of the countervailing and antidumping duty orders, the United States nearly doubled its duties on Canadian softwood lumber imported from Canada in November.

According to the National Association of Homebuilders, production bottlenecks are causing delays in construction and increasing construction costs.

After two consecutive quarterly drops, residential investment showed moderate recovery in the fourth quarter.

Private non-residential private structures such as gas drilling and oil well drilling saw an increase of 1.8% in January. This suggests a recovery in spending in the first quarter. In the October-December quarter, spending on buildings fell for the third consecutive quarter.

In January, spending on public projects rose 0.6%. Spending on federal projects rose by 13.8% while spending on construction projects of the state and local governments fell by 0.5%.