Oct housing starts +1.5% to 1.228m SAAR,....>

US DATA: Oct housing starts +1.5% to 1.228m SAAR, slightly below the 

1.230m rate expected following upward revisions to the previous two 

months. There was a 4.7% rise in the South, suggesting limited impact 

from Hurricane Michael. There should be a rebuilding boost in the coming 

months. 

- Starts were down in the Northeast (-34.1%) and West (-4.6%), but 

up in the Midwest (+32.9%). 1-family starts -1.8% and multi-family 

starts +10.3%. 

- Building permits -0.6% to 1.263m SAAR vs 1.260m expected, with 

1-family permits -0.6%, and multi-family -0.5%. Homes permitted but not 

started +1.2%.

- Oct starts were slightly above their Q3 average, while permits were 

slightly below their Q3 averages.

- Homes under construction +0.5%, but completions -3.3%, so new home 

supply for sale is likely to fall in the near term.