U.S. Economy: Production Increases, Housing Stagnates

Production at U.S. factories climbed in January for a fifth consecutive month, while builders began work on fewer single-family houses, showing the expansion remains driven by manufacturing as housing stagnates.

Manufacturing output increased 0.3 percent after a revised 0.9 percent jump in December that was more than twice as large as previously reported, figures from the Federal Reserve showed today. Total production, including mining and utilities, unexpectedly dropped. Single-family home starts decreased 1 percent to a 413,000 annual pace, the fewest since May 2009, according to the Commerce Department.