Home and real estate prices fell a record amount in the United States last month, and U.S. home building dropped to a record low, providing more evidence of the problems in the American economy.
The Labor Department says U.S. consumer prices were down one percent for the month - the sharpest drop in 61 years. Prices fell as energy costs dropped and merchants cut prices on cars and clothes.
Declining prices raise concerns that deflation could further slow the economy, as consumers put off purchases hoping they will get a better deal in the future.
A separate report from the Commerce Department shows housing starts falling by a sharp 4.5 percent in October. That slashes the number of new homes under construction to the lowest level (791,000) since economists began keeping such records in 1959. Falling property values and tight lending discouraged prospective home buyers.
The slumping economy has been hurting the U.S. auto industry. Executives from the three major U.S. automakers: General Motors, Chrysler and Ford, and the United Auto Workers were back before Congress Wednesday to make another plea for $25 billion in emergency government loans.
UAW President Ron Gettelfinger told a House of Representatives committee that the car companies are in "dire" condition, and their collapse could cost three million jobs.
The automakers' plea for help is getting a skeptical reception from the Bush administration and some members of Congress and the Senate.
Some information for this report was provided by AFP, AP, Bloomberg and Reuters. Reported by VOA News.
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