The monthly
report on new residential construction from the Commerce Department revealed on
Friday that housing starts climbed by 9.6 per cent m-o-m in August to a
seasonally adjusted annual pace of 1.356 million (the highest
level in four months),
while building permits jumped by 4.9 per cent m-o-m to a seasonally adjusted
annual rate of 1.475 million (the highest level in five months).
Economists had forecast
housing starts of 1.310 million units for August and building permits of 1.410
million units.
Data for July
was revised to show homebuilding growing at
a pace of 1.237 million units, instead of rising at a rate of 1.238 million
units as originally announced.
According to
the report, permits for single-family homes, the largest segment of the market,
increased by 2.8 per cent m-o-m in August, while approvals for the
multi-family homes segment (includes 2 to 4 and 5 or more housing units) surged
by 9.2 per cent m-o-m.
In the meantime, groundbreaking on single-family
homes soared by 15.8 per cent m-o-m in August, while multi-unit starts fell by 6.7
per cent m-o-m.