US housing starts jump past forecasts in November
By Alexander Bueso
Date: Thursday 16 Dec 2021
(Sharecast News) - Homebuilding activity surprised to the upside last month on the back of mild weather and inventory building in reaction to stronger demand and higher prices.
According to the Department of Commerce, in seasonally adjusted terms, US housing starts jumped by 11.8% versus October to reach an annualised pace of approximately 1.68m.
Economists had expected a smaller rise to 1.57m.
October housing starts meanwhile were revised lower, from a preliminary estimate of 1.52m to 1.50m.
Permits for the start of construction increased alongside by 3.6% month-on-month to reach 1.65m (consensus: 1.67m).
Commenting on the latest data, Ian Shepherdson, chief economist at Pantheon Macroeconomics, attributed the gain in starts to mild weather and inventory building.
"A December correction seems a good bet. But it's clear that the downshift in construction activity in the first half of this year is now over, and the trend is beginning to pick up, lagging the rebound in mortgage applications by a few months," he said.
"Mortgage demand is still rising, so the outlook for construction through Q1 next year, at least, is positive."
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