U.S. builders broke ground in August on the fewest new homes in 17 years, signaling the worst housing recession in a generation will continue to weigh on growth in coming months, economists said before a report today. Housing starts fell 1.6 percent in August to an annual rate of 950,000, according to the median forecast in a Bloomberg News survey of 74 economists. Building permits, a sign sign of future construction, probably fell 1 percent to a 928,000 pace.
Builders will probably keep scaling back as stricter lending and record foreclosures swell the number of properties on the market. The housing and credit meltdowns that led to the collapse of Lehman Brothers Holdings Inc. may continue to subtract from economic growth for the rest of the year and into next.
Reported by Bloomberg News (9/17/2008)
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