U.S. Builders Upbeat, Manufacturing Shows Some Life

Source: Reuters

* Homebuilders' sentiment highest in more than a year

* New York manufacturing activity, employment rebound

* Credit-card defaults stabilize (Recasts throughout; updates markets)

By John Parry

NEW YORK, Aug 17 (Reuters) - More signs the U.S. economy was exiting its worst recession in 70 years emerged on Monday with reports showing confidence rising among homebuilders, factory activity perking up in New York state and credit card defaults slowing.

The data, however, failed to stem worries on Wall Street about weak U.S. consumer spending and the staying power of any economic recovery, as major indexes closed sharply lower. For full market report, see <.N>

The National Association of Home Builders and Wells Fargo said their Housing Market Index edged up one point to 18 in August -- the highest level since June 2008 and the second consecutive monthly gain.

A separate report from the New York Federal Reserve showed activity at New York state factories grew for the first time since April 2008, suggesting manufacturers could lead the economy out of its worst downturn since the Great Depression.

"The jump in the Empire State manufacturing index in August back into positive territory supports other evidence that the recession ended around the middle of the year. But the strength of the recovery remains in question," said Paul Dales, U.S. economist at Capital Economics in Toronto.


Read more: http://www.reuters.com/article/economicNews/idUSN1737682120090817