U.S. housing starts dropped in January to the lowest level since records began in 1959, data showed yesterday, as builders shelved construction plans to try to clear a glut of unsold houses caused by a slump in demand.
Further darkening the picture for an economy mired in a 13-month old downturn, U. S. industrial production shrank more than expected in January, while the amount of manufacturing capacity being tapped hit its lowest level on record.
"The reports tell us that the recession is deepening and the risk of deflation is growing. We continue to see this adverse feedback between the housing market and the weakening economy," said Sal Guatieri, an economist at BMO Capital Markets in Toronto.
Thursday, February 19, 2009
Housing starts lowest since 1959
Housing starts are the lowest since 1959: