Fleet Management

Home Starts Down For December, Up For Year

January 17, 2002

SHARING TOOLS        | Print Subscribe
Construction of new homes fell in December, but final numbers for 2001 posted a solid gain.

The U.S. Commerce Department reported Thursday morning that housing starts fell 3.3% in December, but still managed to increase 2.2% for the year. 1.6 million housing units were built during the year, remarkable when you consider that housing starts are one area that is usually severely affected in a recession. The figure is the second best in 15 years.
Newport Communications Senior Economist Jim Haughey says the December decline in housing starts was due to an unusually high November for multi-family starts due to warmer than seasonable weather for builders. He notes the December level was only slightly below the year 2001 average month.
“The important data for the future is that building permits rose 4% in December," Haughey says. "December permits were 5% above starts, 11% above October permits and slightly above the average month in 2001,” he says.
Helping the housing market along were cuts in interest rates by the Federal Reserve last year to their lowest level in 40 years.
According to Haughey the strong housing report is evidence that consumers have the necessary confidence to send the manufacturing sector into a recovery early in 2002.

Comment On This Story

Name:  
Email:  
Comment: (Maximum 2000 characters)  
Leave this field empty:
* Please note that every comment is moderated.

Newsletter

We offer e-newsletters that deliver targeted news and information for the entire fleet industry.



GotQuestions?

LUBRICANTS

The expert, Mark Betner from Citgo will answer your questions
Ask a question

Sponsored by


WHEEL ENDS SOLUTIONS

Wheel end expert Jeff Geist from STEMCO will answer your questions
Ask a question

Sponsored by

Magazine