BUSHONOMICS:

Housing Construction at 17-Year High, Report Says (AP, November 19, 2003)

Residential construction sizzled in October, reaching the highest level of activity in 17 years, a fresh sign that the red-hot housing market is helping to fire the economy's recovery.

The Commerce Department reported Wednesday that builders broke ground on 1.96 million units, at a seasonally adjusted annual rate, representing a 2.9 percent increase from September's pace.

The level of activity in October marked the strongest monthly performance since January 1986 and left economists marveling at the strength of the housing sector, which has hummed along throughout the economy's economic slump as low mortgage rates have beckoned buyers.

Economists were predicting residential construction would decline in October to a rate of around 1.85 million units.

"U.S. housing starts blew away estimates,'' said Sherry Cooper, chief economist at BMO Nesbitt Burns. "The economy is looking increasingly steamy.''