Housing Starts Off Slow

Rueters reported yesterday that the U.S. inflation is edging up and housing starts are falling. The sharp fall of new home construction last month may show lingering weakness in the economic recovery.

The Commerce Department reported yesterday that housing starts dropped 10.6 percent, or 529,000 rental units were built instead of an anticipated 600,000. This seasonally-adjusted number is the lowest level of housing starts since April and the biggest percentage drop since January.