U.S. construction of new homes fell by 6.3 percent in September to a seasonally adjusted annual rate of 817,000 units, the lowest point since January 1991, the Commerce Department said in a report Friday.
The 6.3 percent drop in housing starts was much bigger than the expected percentage of 1.6.
The report showed that single-family housing starts plunged by 12.0 percent last month to a seasonally adjusted annual rate of 544,000 units. Multi-family housing starts, however, rose by 5.8 percent to an annual rate of 254,000 units.
By region, new home construction decreased by 20.9 percent in the Northeast and by 16.8 percent in the West. But construction in the Midwest increased by 5.6 percent, while the South saw housing starts edge up by 0.5 percent last month.
Meanwhile, permits for future groundbreaking, an indicator of builder confidence, were down 8.3 percent in September to an annual rate of 786,000 units, the weakest level since November 1981.
The U.S. housing industry is suffering its worst downturn in decades. The severe housing downturn and a persisting credit crunch have been the major drag on the overall economy.
Many economists believe that economic activities will contract in the final quarter of this year.
Source: Xinhua
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