Momentum in U.S. Housing Spurs Economy as Factories Struggle

America’s housing market is starting to heat up and provide some pep for an economy held back by lukewarm manufacturing.

Purchases of new homes climbed in May to a 546,000 annualized pace, the strongest since February 2008, according to Commerce Department data on Tuesday. Another report from the agency showed orders placed with factories for business equipment rose last month for just the second time this year.