This morning we got mixed news on the economy. The good news is that the prices you are paying for goods is not as bad as in prior months when energy was through the roof. The bad news is that housing is as far from recovery as it can be.
Consumer prices came in on the nominal number at -1.0% while estimateswere -0.7%. CPI on an ex-food and ex-energy basis came in at -0.1%versus +0.1% estimates.
Housing starts for October at -4.5%, even worse than the -3% seen inSeptember. This comes to a seasonally adjusted rate of 791,000 versusan expected annualized reading of 780,000 units. While this is notquite as bad as estimates were bracing for, keep in mind thatthis is essentially a record low.
On a nationwide basis, it was estimated that 69,000 houses were started in October, and an estimated 59,600 building permitswere issued in October. Both numbers are not seasonally adjusted.
Jon C. Ogg
November 19, 2008