News In Brief

Surge in housing starts stuns, troubles the experts

In a stunning acceleration, housing starts leaped 11.2 percent in February to their highest level in nearly six years, to a rate of 2.2 million units a year for new residential construction, the government said Friday.

The latest report also showed more strength in January, a 16.7 percent increase. The new data confounded industry analysts, most of whom considered the figures announced last month to be overstated.

But the renewed housing boom is viewed as something of a mixed blessing by many analysts on Wall Street and elsewhere. They fear the economy is becoming overheated, part of a growing strain on credit and capacity that could pressure interest rates upward and eventually rekindle high inflation.

You've read  of  free articles. Subscribe to continue.
QR Code to News In Brief
Read this article in
https://www.csmonitor.com/1984/0319/031945.html
QR Code to Subscription page
Start your subscription today
https://www.csmonitor.com/subscribe