Housing Starts, Factory Output Strong

Single-family housing construction hit a 20-year high and even the nation’s beleaguered factories showed unexpected strength in February as the remarkable U.S. economy turned in another stellar performance. The Commerce Department said construction of single-family homes rose 1.1% to a seasonally adjusted annual rate of 1.41 million units, the best showing since December 1978. Overall, housing construction dipped 0.6%, reflecting a drop in apartment building, but the 1.8 million annual rate for total home building was down only slightly from a 12-year high of 1.81 million units set in January. Applications for building permits rose 2.7% for single-family homes to a record annual rate of 1.31 million units. The Federal Reserve reported that output at the nation’s factories, mines and utilities rose a better-than-expected 0.2% last month, led by a 1.8% surge in production of computers, computer chips and communication equipment. The nation’s factories operated at 80.3% of capacity in February, the lowest capacity utilization rate in 6 1/2 years.