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.