US housing starts hit 1-year low

Washington

US homebuilding fell to a one-year low in September as Hurricanes Harvey and Irma disrupted the construction of single-family homes in the south, suggesting housing probably remained a drag on economic growth in the third quarter.

The report on Wednesday from the Commerce Department also showed a decline in building permits, raising concerns that the housing market recovery is stalling. Homebuilding and sales are well below their peaks before the housing bubble burst in 2006.

"Residential construction should be a hefty drag on third-quarter GDP growth," said Michael Gregory, deputy chief economist at BMO Capital Markets in Toronto. "Housing activity has shifted from leading the economic expansion to now just following it, at best." Housing starts decrease…