Washington ? Construction spending climbed to a record high in August, helped by a renewed boom in housing. Even bigger gains are expected in coming months, spurred by the massive rebuilding required in the wake of hurricanes Katrina and Rita.

The Commerce Department said Monday that total August spending rose by 0.4 percent, the biggest increase in three months. It pushed building activity to an all-time high of $1.11 trillion at a seasonally adjusted annual rate.

The increase did not include any hurricane-related activity because Katrina did not strike until late in August. But the government said all the spending on the rebuilding of homes and businesses in coming months will add to the construction figures.

Meanwhile, the Institute for Supply Management said its manufacturing index advanced to 59.4 percent in September from 53.6 percent the month before, for the industrial sector’s 28th consecutive month of growth.

The Commerce Department says construction spending rose 0.4 percent in August to a record and was the biggest increase in four months. Construction is under way in downtown Portland, Ore.

It was the highest reading since the gauge hit 59.6 percent in August 2004 and well above the 54 percent reading that analysts had expected.

A reading above 50 indicates the sector is expanding; below 50 indicates manufacturing activity is shrinking. The index is compiled from a survey of purchasing executives in industries across the country.

But manufacturers reported another sharp jump in prices last month as higher crude oil costs and transportation problems caused by the hurricanes boosted input costs. The price index rose to 78 percent in September, a 15.5 percentage point rise from 62.5 percent in August, the institute said. The price index had jumped 14 percentage points the month before.