US housing starts rise in August

| September 18, 2009 | 0 Comments
US housing starts rise in August

The US economy has received a further boost after the Commerce Department revealed a rise in housing starts for the month of August.

According to the Commerce Department, construction of new US homes rose 1.5% in August to an annual rate of 598,000 properties.

The rise was the fastest since November 2008, giving hope that the world’s largest economy is emerging from recession.

Meanwhile, applications for building permits, a barometer of future home construction, rose 2.7% to 579,000 units in August but were down 32.4% from a year earlier.

Earlier this week, US Fed Chairman, Ben Bernanke said: “From a technical perspective, the recession is very likely over.”

In addition, other data showed a marginal rise in US consumer prices - but above expectations, reinforcing hopes the economy is in recovery mode.

Also this week, the Commerce Department revealed a rise in US retail sales for the month of August, helped by the US Government’s Car Allowance Rebate System (CARS), branded the “cash for clunkers” scheme.

Commenting on the housing start figures, Alan Gayle at Ridgeworth Investments, comments: “This data shows that we are continuing to see improvement on the housing front after an extended period of decline. This suggests that the market is moving towards stability.”

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