U.S. Housing Starts Unexpectedly Fell in April

[marmar]

(Bloomberg) Housings starts in the U.S. unexpectedly fell in April as home builders continued to struggle almost two years into an economic recovery.

Work began on 523,000 houses at an annual pace, down 11 percent from the prior month and less than the 569,000 median forecast of economists surveyed by Bloomberg News, figures from the Commerce Department showed today in Washington. Building permits, a sign of future construction, also decreased.

Falling home values and the prospect of more foreclosures entering the market mean home construction will be slow to gain traction. Unemployment at 9 percent and stagnant wages indicate any recovery in housing may take years to unfold.

“Job growth is essential to household formation and to keep home prices from falling further,” said Eric Green, chief market economist at TD Securities Inc. in New York, who forecast permits at 550,000. “I don’t see home sales doing much of anything” for the foreseeable future. .............(more)

The complete piece is at: http://www.bloomberg.com/news/2011-05-17/u-s-housing-starts-unexpectedly-declined-in-april-to-523-000-annual-pace.html

[LiberalLoner]

1. It's always unexpected, isn't it? Unexpected unemployment rise, unexpected inflation,

unexpected rise in those who need food stamps, unexpected rise in malnutrition of the children, it goes on and on.

[marmar]

2. True.....One might get the impression that Economists are a ship of fools ......

..... which just can't be true !!!!!

[LiberalLoner]

3. LOL! n/t