Pace of U.S. housing starts likely to have slowed slightly in November

The U.S. housing starts rebound in October was strong after the hurricane-induced construction stumble in September. Starts had risen 13.7 percent to 1.29 million-unit pace in October, which is among the strongest months of the current cycle. This marks a solid beginning for residential investment in the fourth quarter GDP, which is slated to be positive after being a drag the last two quarters.

The increase in construction was widespread as only the West recorded building slow, and single-family and multifamily recorded strong gains. That the rate of building came back much stronger in October than before the storms hit is an encouraging sign, noted Wells Fargo in a research report. The rise in permits issued along with continued strength in builder sentiment also augurs well for residential investment in months ahead. Still the pace of housing starts is expected to have decelerated slightly in November following October’s outsized ramp up, added Wells Fargo.

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