Wednesday, April 8, 2009

Home Construction Rebounds least that was the headline in the Globe and Mail. Now, I don't know who writes headlines, but this is a great example of a misleading one and I'll go ahead and blame the writer - Heather Scoffield. According to Heather, housing starts increased by a "mind boggling" 13.7% in March. She then goes on to enumerate a number of reasons why the uptick in starts may not signal anything significant, which begs the question why the headline was so exuberant.

What didn't make the article? How about the fact that year-over-year March housing starts - a better measure than the highly volatile month-over-month - were down 36% and quarter-over-quarter starts have fallen 20%. Not exactly a rebound.

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