October 18, 2006 8:31 AM, EDT

Housing Starts Rise 5.9% in September

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ew housing starts rose 5.9% in September, the Commerce Department said Wednesday.

Starts increased to a 1.772 million unit annual rate, up from a 1.674 million pace in August, the department said.

The rise bested economists’ forecast of a drop to a 1.64 million pace, Bloomberg reported.

Prior to September, housing starts had declined for three consecutive months, falling about 24% from a year earlier, Bloomberg said.

Starts have fallen about 18% year-over-year, Bloomberg reported.

Building permits, an indicator of future construction, posted their eighth straight monthly decline, falling to an annual rate of 1.619 million, from 1.727 million in the previous month.

Permits have not declined for eight straight months since 1974, Bloomberg said.

ncreased construction can mean more business for flatbed trucking companies that haul building materials. In home construction, dry van freight can see demand increases in for delivery of household appliances and furniture.

Housing starts increased in 14% in the South and 3.4% in the Midwest while falling 14% in the Northeast and 2.2% in the West.