U.S. Economy: Housing Starts Tumble to Six-Year Low (Joe Richter)

  By Joe Richter

  Nov. 17 (Bloomberg) -- Housing starts in the U.S. tumbled in October to the lowest level in more than six years, raising the prospect that the economy will be further weakened after growing last quarter at the slowest pace since 2003.

  The larger-than-expected drop raises the prospect that the worst isn't over for the residential property market, which is enduring its biggest slump in 15 years. The report also casts doubt on the Federal Reserve's assumption that the housing slide hasn't yet spilled over to the rest of the economy.

  ``This is a shocking number,'' said Phillip Neuhart, an economist at Wachovia Corp. in Charlotte, North Carolina. ``The market is going to remain weak well into next year.''

more

READ MORE: Bloomberg

{mos_sb_discuss:2}