NEW YORK (CNN/Money) - Construction spending climbed 0.5 percent in September, according to a government report Tuesday, meeting Wall Street expectations and reaching a record high.

The Commerce Department said construction spending rose to a seasonally adjusted annual rate of $1.12 trillion in September, up from August's revised annual rate of $1.115 trillion.

The September figures matched expectations of economists polled by Reuters.

September private construction spending advanced 0.6 percent to a $871.5 billion annual rate.

But private nonresidential construction, often used as an indicator of business confidence, shrank by 0.3 percent to $247.2 billion.

Spending was unchanged in the public sector at $248.5 billion in September.

The Commerce Department said that Hurricane Katrina's impact on construction spending figures would be minimal since the states that suffered the greatest damage -- Louisiana, Alabama and Mississippi -- accounted for just 3 percent of total construction spending last year.

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