Housing starts fell more than expected last month.
Data from the Department of Commerce on Wednesday showed that housing starts fell 11% at an annual rate of 1.06 million in October. Building permits rose 4.1%, more than forecast, at an annual rate of 1.15 million.
Economists had estimated that housing starts dropped 3.8% in October at an annual rate of 1.16 million, according to Bloomberg. They had forecast that building permits rose 3.8% at an annual rate of 1.147 million.
Single-family units authorized for building were at a rate of 711,000, 2.4% higher than the prior month, and the most since January 2008, according to New River Investment's Conor Sen.
"The 11.0% drop in housing starts in October is a weak start for the final quarter of 2015 and shows the sector has not healed from the recession," wrote Chris Rupkey at Bank of Tokyo-Mitsubishi to clients. "Housing won't hold the expansion back, but a sluggish home and apartment building trend will keep the US economy from setting any land speed records."
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