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| US new housing figures disappoint | US new housing figures disappoint |
| (21 minutes later) | |
| The number of new houses being built in the US edged up in September, but by less than expected, raising concerns about the strength of the US recovery. | The number of new houses being built in the US edged up in September, but by less than expected, raising concerns about the strength of the US recovery. |
| Housing starts rose by 0.5% to a seasonally adjusted annual rate of 590,000 homes, compared with a revised figure of 587,000 in August. | Housing starts rose by 0.5% to a seasonally adjusted annual rate of 590,000 homes, compared with a revised figure of 587,000 in August. |
| But the rate was still down by 28.2% on the 822,000 homes started in September 2008, the Commerce Department said. | But the rate was still down by 28.2% on the 822,000 homes started in September 2008, the Commerce Department said. |
| Analysts had expected a rate of more than 600,000 housing starts. | Analysts had expected a rate of more than 600,000 housing starts. |
| "It doesn't bode too well. We really want to see an uptick here, as obviously housing is so important," said Dan Cook at IG Markets. | "It doesn't bode too well. We really want to see an uptick here, as obviously housing is so important," said Dan Cook at IG Markets. |
| "If we can get more starts, we're putting more people to work and that would be very positive, and unfortunately we just didn't see that today." | "If we can get more starts, we're putting more people to work and that would be very positive, and unfortunately we just didn't see that today." |
| New applications for building permits, considered a good sign of future activity, fell by 1.2% in September. | New applications for building permits, considered a good sign of future activity, fell by 1.2% in September. |
| Volatile prices | |
| Separate figures from the Labour Department showed that producer prices fell unexpectedly by 0.6% in September. Analysts had expected prices to remain unchanged. | |
| The fall was sparked by a drop in fuel costs during the month. | |
| The Producer Price Index tracks the price of goods before they reach the shops and is considered an early indicator of price trends. | |
| However, the index has been volatile in recent months, giving little indication of the long-term trend. | |
| A recovery in the US economy would usually lead to rising prices. | |
| "We keep waiting for some sort of inflationary pressures to reflect the better-than-expected [third quarter] earnings we're seeing in corporate America, [but] surprisingly enough we're just not seeing it," said David Dietze at Point View Financial Services. |