Housing construction plunged in August, falling to the lowest level in more than three years as the industry showed further signs of a dramatic slowdown.
The Commerce Department reported yesterday that construction of new homes and apartments fell by 6 percent, the third consecutive decline and a much bigger setback than analysts had been forecasting.
Will the economy be dragged down by the slowdown in housing, or will it hum along, virtually unaffected?
Economists are split.
Housing starts have declined for six of the last seven months and August starts, reported Tuesday, dropped to the lowest level in three years. The decline in August was double what economists had expected.