WASHINGTON, Nov 17 (Reuters) – U.S. construction spending unexpectedly rebounded in August, likely lifted by home renovations as higher mortgage rates continued to weigh on single-family homebuilding.

The Commerce Department’s Census Bureau said on Monday that construction spending increased 0.2% after an upwardly revised 0.2% gain in July. Economists polled by Reuters had forecast construction spending would ease 0.1% after a previously reported 0.1% dip in July.