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Housing Starts Down; Producer Prices Up

Posted Mar 18, 08 11:55 AM CDT in Business 

(Newser) – Housing starts fell yet again in February, and building permits hit a 16-year low, Bloomberg reports. The annual housing start rate fell to 1.065 million homes, a 0.6% drop from January, while permits sank 7.8%, indicating still bigger declines to come. “We don’t see it bottoming out,” said one Wachovia economist. February’s starts beat estimates, but permits fell more than forecast.

In a separate report today, the Labor Department said producer prices excluding food and energy rose a more-than-expected 0.5%. But inflationary concerns will likely take a back seat when the Fed meets today, traders predict. “The recession in housing, which will now extend to nine quarters… means that inflation in the Fed’s mind is of secondary importance,” said one economist.

Source Bloomberg

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A worker climbs scaffolding on a new home construction project in Park City, Utah, on Thursday, Jan. 17, 2008.   (AP Photo/Amy Sancetta)
Sign placer Mark Garvin, left, loads new home advertising signs on the trailer, Sunday, April 15, 2007, in Las Vegas.   (AP Photo/Jae C. Hong)
Construction workers frame a new house Friday, Aug. 31, 2007 in Gilbert, AZ.   (AP Photo/Matt York)
Construction workers build a new house in Palo Alto, Calif., Tuesday, May 15, 2007.   (AP Photo/Paul Sakuma)
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housing market  • Ben Bernanke  • inflation  • construction  • core inflation  • housing starts  • building permit


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