November 18, 2006	Saturday	Shawwal 25, 1427

WASHINGTON, Nov 17: US housing starts plunged to a six-year low to exacerbate fears for the outlook of the world’s largest economy, according to data on Friday. New home construction projects tumbled 14.6 per cent in October compared to September to a seasonally adjusted rate of 1.486 million units, the Commerce Department said.

They were down 27.4 per cent from October 2005 to stand at their lowest point since July 2000.

Economists said the housing slump had worrying implications for consumer spending in the US economy, which has slowed markedly this year already.

“If the heavily indebted US consumer suddenly decides to appreciably increase savings next year, a recession would be more likely than a soft landing,” Manufacturers Alliance chief economist Daniel Meckstroth said.

The housing market has cooled dramatically this year following a boom in recent years.—AFP