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Housing starts plunge more than expected

Akin Oyedele
Housing starts plunge more than expected

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."

More to come ...

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