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October 19, 2005 9:45 AM, EDT

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.S. housing starts rose 3.4% in September, the Commerce Department said Wednesday.

The increase to a 2.108 million unit annual rate, up from a revised 2.038 level in August, was greater than a decline that economists had forecast for the month, Bloomberg reported.

uilding permits, an indicator of future construction, rose to a 2.189 million annual rate, from 2.138 million in August.

ncreased construction can mean more business for flatbed trucking companies that haul building materials. Also, in the case of home construction, dry van freight can see an increase in demand for the delivery of household appliances and furniture.

Housing starts rose 6.9% in the South and 1.9% in the Midwest. They were unchanged in both the Northeast and West regions, Commerce said.