Construction spending in May totaled $1.036 trillion at a seasonally adjusted annual rate, its highest level since October 2008, according to the Associated General Contractors of America (AGC).

May spending was 0.8 percent higher than in April and 8.2 percent higher than in May 2014, AGC reports.

“There were solid monthly and year-over-year gains in May for all major construction categories—private nonresidential, residential and public,” says Ken Simonson, the association’s chief economist. “The private segments appear poised to maintain growth throughout the year. But contractors increasingly report difficulty in finding workers with the right skills to construct large and complex projects.”

He notes that the year-over-year growth rate was the strongest since March 2014, indicating a faster pace of construction spending overall.

Private nonresidential spending in May increased 0.9 percent from April and 10.3 percent from a year earlier, while public construction spending rose 0.7 percent from a month before and 2.8 percent from 12 months earlier.