Friday, November 17, 2006

Forex News: U.S. Oct. new construction of homes down 14.6%

Forex News

Home builders retreated on a massive scale in October, dashing hopes for a quick turnaround in the housing market.

Starts of new homes plunged 14.6% in October to a seasonally adjusted annual rate of 1.486 million, the lowest level since July 2000. Building permits fell 6.3% to a seasonally adjusted annual rate of 1.535 million, the lowest level in nine years.

Housing starts are now down 27.4% from October 2005 levels. Building permits are down 28% year-on-year.

The decline in October was much larger than expected by economists, who were forecasting a 4.5% drop in starts to 1.69 million. Building permits were expected to fall marginally to 1.62 million.

September's starts data were revised lower. Starts were revised to 1.74 million from 1.77 million. Permits were revised higher to 1.638 million from 1.620 million.


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