Free Trial

**MNI: 5 Things We Learned From New Residential Construction Data>

By Sara Haire and Holly Stokes
     WASHINGTON (MNI) - The following are the key points from the 
November new residential construction data released Thursday by the 
Commerce Department: 
     - December housing starts saw a decline of 8.2% to a 1.192 million 
rate, much lower than 1.275 million expected. However the 4Q average is 
6.7% higher than the 3Q average, pointing to an increase in residential 
fixed investment. Housing starts in November were revised up to 1.299 
mln from 1.297 mln. 
     - Permits saw a very small 0.1% decline to a 1.302 million rate, 
but still ahead of expectations for 1.293 million. The 4Q average for 
building permits was 5.2% higher than the 3Q average.  
     - Starts saw a 14.2% decrease in the South, while building permits 
issued fell 11.1%in the region. This indicates a return to pre-hurricane 
levels, surprising those expecting building to pick up in Texas and 
Florida. Starts were down across all regions, with a 4.3% decline in the 
Northeast, a 2.2% decline in the Midwest, and a 0.9% drop in the West. 
     - Single-family housing starts fell 11.8% in December, but 
multi-family rose 1.4%. For permits, single-family were up 1.8% to 881k, 
the highest level seen since August 2007, which points to housing starts 
potentially rising in the coming months. However, multi-family was down 
     - Homes permitted but not started rose 1.3%, a further indication 
that starts should be on the rise in the near future. Homes under 
construction were up a small 0.7%, while completions rose 2.2% bouncing 
back after the slight decline in November. 
     ** MNI Washington Bureau: 202-371-2121 ** 

To read the full story

Why Subscribe to


MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.