US Homebuilders began construction at an annual rate of 529,000 new homes during the month, 10.6 percent below the revised September rate of 592,000 and 30.7 percent below the 763,000 rate during the same month last year. It was the lowest level of housing starts since April, when the annual rate was 479,000.

The weak figures show that builders still lack confidence as the glut of unsold homes is still on the market. New home construction contributes largely to the nation's economy. The slowdown in construction means that there are fewer new homes for sale. When people buy new homes, they also purchase many other which would go with it.

What happened in October was a bad sign and may have a negative impact on the economy. Also showing further weakness was the building permits issued which fell to a seasonally adjusted annual rate of 552,000 which was 4 percent below the revised September rate of 575,000 and 24 percent below October last year.