Hot on Facebook

Guy Buys $123 Safe on eBay, Finds $26,000 Inside Seller tries to get half the cash back, fails »

Housing Starts Down; Producer Prices Up

Housing will hurt '08 growth

By Kevin Spak, Newser Staff

Posted Mar 18, 2008 11:55 AM CDT

(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.

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)

« Prev« Prev | Next »Next » Slideshow

To report an error on this story, notify our editors.

More Newser Stories

New Home Construction Down 11% in March

Slow pace projects that market dive hasn't run its course

(AP) - Housing construction plunged to the second-lowest level on record last month, providing a sobering sign that the worst housing slump in decades has not ended. Construction of new homes dropped by nearly 11% , the second-lowest construction pace in records that go back 50 years. The decline was worse than economists expected; February activity was revised lower as well. More»

Consumer Prices Surge Most Since '91

Consumer prices up 1.1%; wholesale up 1.8%.

(NEWSER) - Consumer prices rose a staggering 1.1% in June, Bloomberg reports. The figure far surpassed analyst estimates, and brings the year-over-year figure to 5%–the biggest surge since 1991. Core inflation, which excludes food and energy, rose a more-than-expected 0.3%. “Inflation has galloped,” one economist said. “It puts the Fed in a really tricky position. I don't see how they can change rates this year.” More»

Bernanke Signals New Rate Cuts

Says central bank 'will act as needed' to further minimize economic risks

(NEWSER) - Federal Reserve Chairman Ben Bernanke today said that the board stands ready to cut interest rates again to give the economy "adequate insurance against downside risks," reports the Wall Street Journal. The move, which follows 2.25% in cuts to the key rate since September, is widely expected at the Fed's March 18 meeting. More»

Wholesale Inflation Surges

Producer prices lap analyst estimates

(NEWSER) - Wholesale prices rose more than twice as fast as analysts predicted in January, in the latest sign that inflation is outstripping growth, Bloomberg reports. After a 0.3% drop in December, finished good prices rose 1% last month, with the core indicator up 0.4%, its biggest gain in almost a year. Fed chief Ben Bernanke will discuss the inflation statistics tomorrow when he delivers a policy report to Congress, MarketWatch notes. More»

Inflation Spikes, Cut in Jeopardy

Fed may have hands tied, as CPI soars past expectations

(NEWSER) - Core inflation bounded ahead of expectations in January, which is bad news for anyone betting on a big rate cut from the Fed–and for the Fed itself. The consumer price index rose 0.4%, with core CPI rising 0.3%, putting the year-over-year figures at 4.3% and 2.5% respectively, well above the Fed’s traditional 1.5%-2% comfort zone, the Wall Street Journal reports. More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

Housing Starts Down; Producer Prices Up

Housing will hurt '08 growth

OTHER STORIES ON OUR RADAR

inflation • Ben Bernanke • housing market • construction • core inflation • housing starts • building permit

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

New Home Construction Down 11% in March

Slow pace projects that market dive hasn't run its course

Consumer Prices Surge Most Since '91

Consumer prices up 1.1%; wholesale up 1.8%.

Bernanke Signals New Rate Cuts

Says central bank 'will act as needed' to further minimize economic risks

Wholesale Inflation Surges

Producer prices lap analyst estimates

Inflation Spikes, Cut in Jeopardy

Fed may have hands tied, as CPI soars past expectations

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?

Housing Starts Down; Producer Prices Up

Housing will hurt '08 growth

Bookmark & Share

OTHER STORIES ON OUR RADAR

inflation • Ben Bernanke • housing market • construction • core inflation • housing starts • building permit

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

New Home Construction Down 11% in March

Slow pace projects that market dive hasn't run its course

Consumer Prices Surge Most Since '91

Consumer prices up 1.1%; wholesale up 1.8%.

Bernanke Signals New Rate Cuts

Says central bank 'will act as needed' to further minimize economic risks

Wholesale Inflation Surges

Producer prices lap analyst estimates

Inflation Spikes, Cut in Jeopardy

Fed may have hands tied, as CPI soars past expectations

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?