Although the number was still in positive territory, the expectation from analyst was for a more solid improvement. The lower figures speak to a lack of recovery in consumer spending and that is being felt by the construction industry and employment in general.
Housing starts rose by 0.5% to a seasonally adjusted annual rate of 590,000 homes, compared with a revised figure of 587,000 in August.
But the rate was still down by 28.2% on the 822,000 homes started in September 2008, the Commerce Department said.
Analysts had expected a rate of more than 600,000 housing starts.
