Construction of new homes in the United States fell to the lowest level in more than a decade in September, the Commerce Department reported Wednesday.
Privately-owned housing starts in September were at a seasonally adjusted annual rate of 1.191 million units, down 10.2 percent from the previous month and 31 percent from a year ago, marking the lowest level since March 1993.
By region, new residential construction activity declined in all parts of the country except the Northeast, which posted a 45.4-percent increase in September. Housing starts were down 11.7 percent in the South, 10.1 percent in the West and 28.4 percent in the Midwest.
Permits for future groundbreaking, an indicator of builder confidence, declined by 7.3 percent in September to a seasonally adjusted annual rate of 1.226 million units, the lowest pace since July 1993.
The once-sizzling U.S. housing market has cooled off significantly since last year. The adjustment in the housing sector, the worst in 16 years, is ongoing and is likely to last longer than expected, according to analysts.
Federal Reserve Chairman Ben Bernanke warned on Monday that further contraction in the housing market is likely to be a "significant drag" on U.S. economic growth in the current quarter and through early next year.
Source:Xinhua
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