Reports Show Uneven Recovery

Groundbreaking for housing in September hit its highest level since 1986, while industrial output fell for the second straight month, the government said in reports underscoring the uneven pace of the U.S. economic recovery.

Groundbreaking for homes jumped 13.3% last month to a seasonally adjusted annual rate of 1.84 million units, the Commerce Department said.

Although the housing market remains strong, separate reports showed that industrial activity during September slackened, and that the labor market has yet to show signs of big improvement amid growing uncertainties about the economy and stock market, and potential attacks against Iraq.

The number of workers lining up for state jobless benefits last week rose by 22,000, surging well above the key 400,000 mark economists consider a stalled labor market, the Labor Department said.

At the same time, the Federal Reserve’s latest data showed that U.S. industrial output fell in September for the second month in a row, leaving economists with little hope that the labor picture will improve any time soon.