New home starts plummet in the US

Julian Harris
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AMERICA’S housing slump looks set to continue, despite recovery in other parts of the world’s largest economy.

Housing starts in the US posted their biggest decline in 27 years in February while building permits dropped to their lowest level on record, it was revealed yesterday.

Groundbreaking on new construction dropped 22.5 per cent last month to an annual rate of 479,000 units, according to Commerce Department data.

Meanwhile, producer prices rose by 1.6 per cent in February, as energy and consumer goods saw a strong increase.

On Tuesday the Federal Reserve said it would “pay close attention” to rising prices and inflation expectations.