Surge in US construction lifts hopes

The US 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 like Home Depot and Lowe's and improving the likelihood that the US economy will accelerate after likely shrinking early this year.

In part, the surge in housing starts in April reflected a rebound from a dismal winter that shut down construction sites and hampered growth across the economy. Builders may struggle to maintain their robust April pace. But there is reason for optimism.