Home construction surges 20.2 percent

Home construction surges 20.2 percent

WASHINGTON

The U.S. housing market has given a sudden jolt to what appeared to be a slumping economy.

Builders broke ground on homes last month at the fastest pace in more than seven years. The stepped-up construction is helping boost sales at stores such as Home Depot and Lowe’s and improving the likelihood that the U.S. economy will accelerate after likely shrinking early this year.

The hints of a healthier economy follow a bleak first quarter.

On Tuesday, the government reported a surprising 20.2 percent jump in residential construction to a seasonally adjusted annual pace of 1.14 million. As a result, analysts at Barclays slightly raised their forecast for economic growth in the April-June quarter to 2.7 percent from 2.6 percent, and Macroeconomic Advisers boosted its estimate to 2 percent from 1.9 percent.

US probes Nissan Versa on reports of safety defect

DETROIT

U.S. regulators are investigating the Nissan Versa subcompact after getting reports that a coil spring in the front suspension can fracture and cut the tires.

The investigation involves approximately 130,000 Versas from the 2008 through 2010 model-years.

The National Highway Traffic Safety Administration says it has gotten 93 complaints from drivers about the issue and one report of a crash. In one case, the coil spring reportedly broke and sliced through a tire while the car was traveling at 65 miles per hour.

The agency says it has received no reports of deaths or injuries related to the issue. Nissan says it’s cooperating with the investigation. NHTSA investigations can lead to vehicle recalls.

Wal-Mart profit falls

NEW YORK

Wal-Mart Stores Inc. reported a 7 percent drop in first-quarter profit as the strong dollar and some efforts to improve its business hurt its bottom line.

The company said Tuesday that higher worker wages and increased spending on its online operations were among the reasons its results missed Wall Street estimates. On the news, investors sent the company’s shares down more than 4 percent.

Wal-Mart’s results adds to questions about the health of consumer spending. The latest government retail sales figures showed spending was flat in April, and Macy’s, Kohl’s and J.C. Penney announced disappointing results despite low gas prices and improvements in the job market.

Home Depot sees profit increase

NEW YORK

A busy spring pushed Home Depot’s first-quarter profit and revenue above Wall Street expectations, and the home-improvement retailer raised its projections for both in 2015.

Sales at U.S. stores open at least a year also was better than most had expected, rising 7.1 percent.

Many retailers have been struggling, but that is not the case at companies that cater to homeowners.

Associated Press