Housing starts 'fewer than projected' in December 2010

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1/19/11, "Housing Starts in U.S. Fell More Than Forecast in December to One-Year Low," Bloomberg, S. Chandra

"Builders began work on fewer homes than projected in December, a sign the industry that triggered the recession continued to struggle more than a year into the U.S. economic recovery.

Housing starts fell 4.3 percent to a 529,000 annual rate, the lowest level since October 2009, Commerce Department figures showed today in Washington. The median forecast in a Bloomberg News survey called for a 550,000 rate....

“With sales still near record lows and a lot of unsold properties in the market, there’s very little reason for builders to add more homes to the supply,” said Sal Guatieri, a senior economist at BMO Capital Markets in Toronto, who

• had forecast starts would drop to a 527,000 rate.

“Housing remains a key downside risk to the economy.” "...

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