Housing starts rise as construction bolsters US economy

Washington

NEW-HOME construction in the US climbed in September, a sign residential real estate will bolster the world's largest economy.

Housing starts rose 6.5 per cent to a 1.21 million annualised rate, more than forecast and the second-highest level in eight years, figures from the Commerce Department showed Tuesday in Washington. A drop in building permits indicates the rebound will be slow to materialise.

American consumers, powered by an improving job market, are keeping the US afloat as they continue to spend on big-ticket items such as homes and cars. A pickup in wage gains would give even more households the …