WASHINGTON — U.S. housing starts fell more than expected in March and permits for future home construction hit a one-year low.
Tuesday's report from the Commerce Department continued the recent run of weak data that has cast a pall on the economy's prospects. Economists say the fragile economy, combined with tepid inflation vindicated the Federal Reserve's cautious approach to raising interest rates.
"It's not just American consumers stepping back a bit this year, homebuilders also lost steam," said Sal Guatieri, a senior economist at BMO Capital Markets in Toronto. "This means the two key drivers of the expansion have lost their pep...."
