Ominous Signs at the Periphery VIII

from April 19

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Associated Press
New Home Construction Posts Big Decline
Tuesday April 19, 10:43 am ET
By Martin Crutsinger, AP Economics Writer
New Home Construction Posts Biggest Decline in 14 Years; Wholesale Inflation Shoots Up

WASHINGTON (AP) -- Inflation at the wholesale level, propelled by a surge in the price of gasoline and other energy products, shot up 0.7 percent in March while construction of new homes and apartments fell by 17.6 percent, the biggest decline in 14 years.

The Commerce Department reported Tuesday that builders started construction onnew homes and apartments at a seasonally adjusted annual rate of 1.84 million unitsin March, down from 2.23 million units in February.

While analysts had been expecting a decline in housing, the steepness of the drop,the biggest plunge since January 1991, caught them by surprise.