The Bani Group Inc.

Housing and Industrial Data Point to Steady Growth:

Ground breaking for U.S. homes rebounded in April and factory activity gained momentum, suggesting a moderate pickup in economic growth early in the second quarter.

The reports on Wednesday were the latest in a series to dampen fears that the recovery in the world's largest economy was stagnating after tepid job growth last month.

The Commerce Department said housing starts increased 2.6 percent to a seasonally adjusted annual rate of 717,000 units.

In a separate report, the Federal Reserve said production at the nation's mines, factories and utilities rose 1.1 percent - the largest gain since December 2010.

"The economy is grinding its way forward, but it's not firing on all cylinders. There are plenty of reasons to be nervous; Europe is top on that list," said Ryan Sweet, a senior economist at Moody's Analytics in West Chester, Pennsylvania.

The reports came on the heels of data on Tuesday showing a strong rebound in factory activity in New York state and confidence among home builders hit a five-year high this month. Retail sales in April also showed underlying strength.

Analysts expect the economy to grow at around a 2.5 percent annual pace in the second quarter, although the government's 2.2 percent initial estimate for first-quarter growth is expected to be lowered to below 2 percent later this month.

Minutes of the Federal Reserve's April 24-25 meeting said several policymakers felt additional monetary easing by the U.S. central bank could be necessary if the recovery lost momentum or downside risks increased.

The jump in industrial production last month was driven by a 4.5 percent increase in utility output, a 1.6 percent gain in mining and a 0.6 percent rise in factory production.

Manufacturing has been one of the main pillars of the recovery from the 2007-09 recession and continues to show resilience even with Europe, a top destination for U.S. exports, teetering on the edge of recession.

The signs of life in the U.S. housing market were bolstered by upward revisions to housing starts and permits for March.