Bloomberg.com: Worldwide

Bloomberg.com: Worldwide: "U.S. Housing Starts Dropped 6.1% to 1.381 Million Pace in July By Shobhana Chandra Aug. 16 (Bloomberg) -- Builders in the U.S. started work on the fewest homes in a decade in July as the industry showed no sign of recovering from the 18-month recession. The greater-than-forecast 6.1 percent decrease to an annual rate of 1.381 million, followed a 1.47 million pace in June, the Commerce Department said today in Washington. Building permits also fell to a 10-year low. Stock markets worldwide have tumbled on concern subprime mortgage defaults will bankrupt more lenders and destabilize the financial system. Consumer spending, which accounts for more than two-thirds of the economy, may weaken as falling prices and limits on borrowing prevent owners from tapping home equity. ``The housing market is still in a downward spiral,'' Brian Bethune, an economist at Global Insight Inc. in Lexington, Massachusetts, said before the report. ``Weak demand is being hollowed out further by much tighter lending conditions in the mortgage credit markets.'' Starts were projected to fall to a 1.4 million unit pace, from an originally reported 1.467 million in June, according to the median forecast of 75 economists polled by Bloomberg News. Estimates ranged from 1.35 million to 1.47 million. Permits, a sign of future construction, decreased 2.8 percent to a 1.373 mill"