US Housing starts fall less than expected

August 17th, 2011 - 12:04 am ICT by Aishwarya Bhatt  

Washington, Aug 16 (THAINDIAN NEWS) US housing starts fell in July but the percentage of fall is less than expected. In a government report which was released on Tuesday, the housing starts fell by 1.5% which is less than the expected percentage fall.

The report showed that the US material import for July increased by 0.3 percent. Analysts say the increased in US import was caused by the high cost of food, fuel and material cost.

The chief global economist of the Economic Outlook Group, Bernard Bahmohl told Reuters that, “The problem for homebuilders of course is that there is still such a massive supply of existing homes that are up for sale as well as lots of foreclosed homes still in the pipeline. As a result homebuyers — they themselves are few and far between –”

The report which was released by the US Commerce Department showed that the housing completion inched up by 11.8 percent. When compared to a year ago, the increment is 9.5 percent. The total completed houses stood at 636,000.

The demand for building permits fell in the report. The report showed that the July demand for building permits fell by 3.2 percent.

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