Starts data out today indicates the housing industry remains a solid support for the US economy. The data posted an increase for residential starts at 2.1 percent to a 1.211 million annualized rate, exceeding all forecasts in Bloomberg survey. Permits, an indicator for future construction, was little changed from previous data. This may signal future construction will stay steady.
Builders have registered the strength of the strong home sales and increasing home prices by having more homes under construction last month than any other time since the beginning of 2008.