Official figures show that the construction of new homes in the United States plunged in February to near-record lows while building permits hit a new low.
Housing starts fell to an annual rate of 479,000, down 22.5% from January, the Commerce Department said. That number was the lowest since April 2009, when the economy was still mired in the worst recession since the 1930s Great Depression.
In April 2009, housing starts were a rate of 477,000, the weakest pace since tracking of the data began in 1959. Economists at the time had estimated that it was the slowest pace in new housing construction since the 1940s.
Housing activity was not expected to pick up any time soon, according to the new data, as permits for new building sank to a record annual rate of 517,000 in February, a decline of 8.2% from the January level. That was the smallest number of permits in records dating back to 1960.
Separate figures show that US producer prices surged in February at their fastest pace in just over 18 months, boosted by high food and energy prices. The report pointed to a build-up in pipeline inflation pressures.
The Labor Department said its seasonally adjusted index for prices paid at the farm and factory gate jumped 1.6%, the largest increase since June 2009, after rising 0.8% in January. Economists had expected a smaller increase of 0.7%.
In the 12 months to February, producer prices increased 5.6%, the biggest rise since March, after January's 3.6% annual rise.
The report came a day after the Federal Reserve said it expected the upward inflation pressure from energy and other commodities to prove transitory but that it would keep a close eye on inflation and inflation expectations.
The increase in wholesale prices last month was broad-based, with energy prices surging 3.3% - the biggest increase since January 2010. Petrol prices, which rose 3.7%, accounted for over 40% of the increase in the energy index. Food prices jumped 3.9%, the biggest increase since 1974.
Stripping out volatile food and energy costs, core producer prices rose 0.2% last month, matching expectations. In the 12 months to February, the core producer price index rose 1.8%, in line with expectations. It was the largest increase since August 2009.
