Housing starts off sharply in September

WASHINGTON, Oct. 17 (UPI) -- Housing starts, a major economic indicator, fell sharply in September, reaching their lowest level since 1991, the U.S. Census Bureau said Friday.

Economic analysts had predicted a 1.7 percent drop for the month to an annual rate of 880,000. But, the estimated annual rate fell to 817,000, down 6.3 percent from the revised August estimate of 872,000.

The rate of privately-owned construction starts is the lowest it has been since January 1991, when the annual rate was 798,000 units, The Wall Street Journal reported.

The annual rate is 31.1 percent lower than the rate a year ago, the Census Bureau report said.

Building permits issued in September dropped 8.3 percent compared with August, reaching an annual rate of 786,000.

At 1,097,000, housing completions rose in September, up 11.7 percent above the annual August estimate of 982,000. A year ago, 1,378,000 completions were recorded, 20.4 percent higher than September 2008.

Construction patterns are closely watched by investors as home building is viewed as a predictor of consumer spending. Increased home starts indicates spending will increase on major appliances, home furnishing, gardening equipment and insurance.