(AP Photo/Rich Pedroncelli)

Associated Press | Construction activity surged in April by the largest amount in nearly a decade. The unexpected gains could mean the hardest-hit sector of the economy is starting to recover.

Construction shot up 2.7 percent last month compared to March, the Commerce Department said Tuesday. It was the biggest one-month improvement since August 2000.

Housing construction jumped by 4.4 percent to a seasonally adjusted annual rate of $263 billion. Home construction has been helped by home buyer tax credits that expired at the end of April. Economists are concerned about the durability of the housing recovery now that the tax credits have expired.

Get the full story: Construction up highest amount in nearly 10 years.