Summary Box: Economy sending mixed signals with manufacturing up but housing still weak

Summary Box: Economy sending mixed signals

HOUSING STARTS: Construction of new homes rose 1.7 percent in July, but the strength came from a surge in the volatile apartment sector. Single-family home construction fell 4.2 percent.

FACTORY OUTPUT: Production at the nation’s factories rose 1.1 percent in July, the biggest increase in 11 months. Manufacturing continues to be the strongest sector in the recovery.

OUTLOOK: Economists believe housing will remain weak with a glut of unsold homes and high unemployment dampening demand. But the gains in manufacturing will help calm fears about a possible double-dip recession.