Housing starts surge in November; consumer prices tame

WASHINGTON — Construction of new homes, helped by better weather, rebounded in the U.S. in November following a setback in the previous month. The Commerce Department said construction of new homes and apartments rose 8.9% in November to a seasonally adjusted annual rate of 574,000 units. The gain represented strength in all areas of the country although the increase was slightly lower than economists had expected. Applications for new building permits were also up, rising 6% to an annual rate of 584,000 units, a stronger showing than economists predicted. The gains are a hopeful sign that the housing recovery is continuing, a development viewed as critical to lifting the overall economy out of recession. In a second report Wednesday, the Labor Department said consumer prices moved higher last month, but they mostly reflected higher energy costs.

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