U.S. housing starts likely to have recovered sharply in October

U.S. housing starts are expected to have recovered strongly in October. In the previous month, housing starts had fallen 9 percent in September; however, the fall was mainly because of a sharp decline of 38 percent in the volatile multi-family series. The single-family starts had risen 8.1 percent in September. Permits for ground-breaking activity on apartment building rose almost 17 percent in September, but that series is expected to have bounced in October, noted Societe Generale in a research report.

In the meantime, single-family permits had increased slightly by 0.4 percent in September; however, new home sales in the period rose by around 3 percent, and builders usually do not break ground on new properties until they receive orders, so that increase could augur well for one-family starts, stated Societe Generale.

Furthermore, the NAHB’s homebuilder index dropped to 63 from 65, however, that stayed amongst the highest levels in one year. Therefore, housing starts are expected to have increased to 1.189 million units annualized in October from 1.047 million units, added Societe Generale.