U.S. Housing Starts Jump 15% to Four-Year High

Builders broke ground on new American homes at an annual rate of 872,000 units last month compared with an upwardly revised 758,000-unit rate in August, according to the Dept. of Commerce. September's rate was the highest since July 2008.

Issuance of building permits, a gauge of future construction, jumped 12% month over month to an annual rate of 894,000 units in September.

The growth signals that the U.S. housing market is recovering from its long slump, which sapped consumer confidence, economists opine. They have long cited housing and employment as the key factors dampening big-ticket consumer purchases such as autos.

A construction rebound also is expected to boost demand for the fullsize pickup trucks favored by contractors.