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Building boosts economy

WASHINGTON — The economic recovery is gaining strength from the biggest rise in construction spending in nearly a decade and the 10th straight month of expansion for manufacturers.

The two positive reports eased some fears that the debt crisis in Europe might be starting to stunt the U.S. economic rebound.

"The recovery is still on track," said Brian Bethune, a senior economist at IHS Global Insight. While Europe's troubles will put a drag on profits at U.S. companies that do business overseas, Bethune said, "it's not going to be a show-stopper."

The burst in April construction spending reported Tuesday by the Commerce Department sent a promising signal for an industry that was among the hardest hit during the recession. The 2.7 percent increase was spread across all major sectors.

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