US housing permits fall to year's lowest

WASHINGTON: Work began on fewer homes than forecast in July and building permits fell to the lowest level in more than a year, indicating little evidence of a rebound in US construction following an expired tax credit.

But production made up for the lost ground as it jumped twice as much as forecast in July, signalling manufacturing is shouldering a US economic recovery that is showing signs of moderating in the second half of the year.

Output climbed 1% as factories churned out more computers, appliances, automobiles and industrial machinery, the Federal Reserve said on Tuesday in Washington. Manufacturing got a boost from auto making as fewer factories shut for mid-year retooling. Output of motor vehicles and parts surged 9.9% in July after falling 2.5% a month earlier.

Housing starts totalled 546,000 at an annual rate last month, less than the 560,000 median estimate of economists surveyed by Bloomberg News and up 1.7% from June, Commerce Department figures showed in Washington on Tuesday.