August Housing Starts Fall 2.2%
Led by a decline in work on single-family homes, U.S. home construction declined 2.2% for the third straight month in August to an annual pace of 1.609 million units, the Commerce Department said Thursday.
Although analysts told Bloomberg before the report was released they are concerned housing may not be a bright spot in this struggling economy, building permits, a gauge of future construction, are still running above the pace of starts.
When housing starts fall, it likely means decreased demand for flatbed trucking companies that haul building materials.
Commerce said that a slump in housing starts in the Midwest accounted for much of the national decline.
Economists had expected starts to rise 1.3% in August to 1.67 million units at an annual rate, Bloomberg said. The last time starts fell for three or more straight months was May through July 2000, according to Commerce.
In August, permits were at a 1.669 million annual rate, compared with 1.712 million a month earlier.
9375
