U.S. housing starts rise in line with expectations in October
Source: FxWire Pro - Commentary / 19 Nov 2019 13:29:02 America/New_York
Housing starts in the U.S. grew 3.8 percent to 1.31 million units in the month of October, following the fall of 7.9 percent in September. This is close to market expectations of a rise of 5.1 percent. The rise was widespread, with both single and multi-family starts coming in higher. Single-family starts rose 2 percent to 936k, while the more volatile multi-family segment recorded a larger gain of 8.6 percent to 378k.
Permits showed a similar narrative to starts, rising 5 percent sequentially after falling 2.4 percent the prior month. Single-family permits continued their six-month advancing streak, rising 3.2 percent. Multifamily permits also rose 8.2 percent, reversing September’s fall of 7.3 percent.
Region wise, starts generally turned positive, with just the Northeast posting a marked fall of 21.9 percent. The West, Midwest and South recorded rise of 17.6 percent, 8.7 percent and 0.7 percent respectively.
“The good news is that U.S. home builder sentiment remains elevated and builders' optimism for sales in the next six months has risen to the highest level since May last year. Elevated sentiment, along with a rise in permits, particularly the six-month consecutive rise in single family permits, bodes well for future construction activity. As such, residential investment, which has subtracted from economic activity in recent history, but turned positive in Q3, is expected to continue to do so over the next year”, said TD Economics in a research report.© FxWire Pro 2019. All rights reserved. The FxWire Pro content received through this service is the intellectual property of FxWire Pro or its third party suppliers. Republication or redistribution of content provided by FxWire Pro is expressly prohibited without the prior written consent of FxWire Pro, except for personal and non-commercial use. Neither FxWire Pro nor its third party suppliers shall be liable for any errors, omissions or delays in content, or for any actions taken in reliance thereon.