U.S. housing starts dropped in August to their lowest level in more than a decade, the Commerce Department reported Wednesday.
Data released by the department showed that U.S. housing starts fell by 2.6 percent to a seasonally adjusted annual rate of 1.331 million units, the lowest level since June 1995 when home construction stood at 1.281 million units.
Housing starts in July had been revised to 1.367 million units from 1.381 million.
In August, single-family housing starts fell 7.1 percent to an annual rate of 988,000 units. Multi-family housing starts, however, were up 12.8 percent to an annual rate of 343,000 units.
Permits for future groundbreaking, an indicator of builder confidence, decreased by 5.9 percent in August to 1.307 million units, down from a revised rate of 1.389 million in July.
The August reading for building permits was also the lowest level since June 1995, when permits were running at 1.305 million.
The August reading was 19.1 percent below the revised August 2006 rate of 1.646 million units.
Compared to the same month of last year, housing starts in August were down 19.1 percent while building permits plunged by 24. 5 percent.
The once-sizzling U.S. housing market has cooled off significantly since last year.
The slump in the housing sector, the worst in 16 years, is expected by economists to continue amid a widening credit crisis stemming from troubles in the U.S. subprime mortgage market, where loans are given to homebuyers with weak credit histories.
Source: Xinhua
|
Comment
Tell A Friend
Print Format
Save Article