HOUSING STARTS DROP 2.6% IN AUGUST

From USA Today:

Construction of new homes fell in August to the slowest pace in 12 years as troubles in the housing industry continued.

The Commerce Department reported Wednesday that construction of new homes fell 2.6% in August to a seasonally adjusted annual rate of 1.331 million units.

That was the lowest pace for housing starts since the June 1995 rate of 1.281 million units.

By region, the drop in housing starts was the worst in the Northeast, where they fell 38% in August, the sharpest drop since December 1990. Starts were off 18% in the West but rose 4.2% in the Midwest and 11.4% in the South.