US home construction drops 2.8 pct. in October
WASHINGTON (AP) — Construction of new homes fell slightly in October after a big surge in the previous month, but the weakness was largely driven by the volatile apartment sector.
Builders started construction at a seasonally adjusted annual rate of 1.009 million last month, the Commerce Department reported today. That was a drop of 2.8 percent from September when construction had jumped 7.8 percent to 1.038 million.
The weakness stemmed from a 15.4 percent plunge in apartment construction, a category that tends to have big swings from month to month. Construction of single-family homes was up 4.2 percent, the third gain in the past four months.
Applications for building permits, a good sign of future activity, rose 4.8 percent in October to 1.08 million.
While overall construction was down in October, analysts said the weakness was confined to apartment building, which had seen a huge increase in September. They noted upward revisions to overall activity in September and August and forecast further gains in the months ahead.