U.S. growth likely getting good support from consumer and housing sector

U.S. housing starts blew past expectations in September, surging 6.5% to 1,206,000 units annualized. That's the highest level since June and the second highest since October 2007 and that, in itself, dismisses the slight net downward revisions to the prior two months. 

This backs up yesterday's report that showed homebuilder confidence at a decade high. Ground broke everywhere except in the Midwest, and for both singles and multifamily units, with the former accounting for over 60% of total starts (the share was nearly 90% back in 2009). 

"But starts could struggle in coming months as building permits pulled back 5% to a still-elevated 1,103,000 units (singles and multis fell). Indeed, the housing sector is facing decent tailwinds such as still-low rates, fairly tight inventories, rising (but at a slower pace) home prices, demand from Millennials, and steady job growth, but a labour shortage is a problem", says BMO Economics.