Housing Starts Down but Permits Surge

Washington, DC, Nov. 17, 2011 -- New construction of U.S. houses fell slightly in October after a strong gain in the previous month, the Commerce Department said.

However, building permits, a leading indicator of housing construction, surged 10.9% to a seasonally adjusted annual rate of 653,000. This is the highest level of permits since March 2010.

Starts fell 0.3% in October to a seasonally adjusted 628,000 annualized units, stronger than the 605,000 pace expected by economists.

Starts in September were revised to a 7.6% gain to 630,000 units compared with the initial estimate of a 15% increase to 658,000.

Starts of new single-family homes rose in October after falling in September. Starts of large apartment projects fell last month after a big gain in September.