US Housing Starts Tumble

US Housing Starts Tumble

U.S. housing starts plunged to a more than three-year low in August, while falling new vehicle costs kept producer prices unexpectedly weak, as showed by government reports, bolstering views the economy is cooling.

The data comes one day before the Federal Reserve's policy-setting committee meets to consider interest rates, and strengthens the case that borrowing costs will remain steady through the end of the year.

The Commerce Department said U.S. housing starts fell 6.0 percent in August to an annual pace of 1.665 million units, the lowest since April 2003 and 19.8 percent below the July 2005 pace.

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