Gloomy US homes data
CONSTRUCTION of new homes in the United States hit a six month low in October, providing more evidence of the economy’s sluggish recovery, while a surge in the cost of new and used vehicles lifted consumer prices.
The Commerce Department said housing starts dropped 10.6 per cent to an annual rate of 529,000 units, the lowest since April. It was the biggest decline in 10 months.
The slump in activity is a blow to the housing market, which had shown signs of stabilisation after a three-year slump.
Separately, the Labor Department said the Consumer Price Index rose 0.3 per cent last month as the cost of new vehicles rose by the most in more than 28 years.
The increase in consumer prices was a touch above market expectations.
But widespread price pressures were absent and analysts attributed the rise in vehicle prices to the now expired “cash for clunkers” scheme.