Although building permits rose significantly during the month of September, climbing 6.30% month over month after contracting -0.40% in August, the losses in housing starts were substantial. According to figures released by the US Department of Commerce, multi-family housing units plunged by 38.00% month over month while single-family homes managed to bounce back from August losses. Building activity has fallen to the lowest levels in 18 months, helped in large part by the falling inventory of existing homes. Data relating to existing home sales is set to be released later in the session, however, the Federal Reserve remains upbeat on the figures as evidenced by comments on construction published yesterday in the release of the Central Bank’s Beige Book. The US dollar is starting to rebound, evidenced by the upward momentum in USDMXN, since erasing most of the post-debate losses.
US Housing Starts Fall to 18 Month Low
Daily Analysis - 20/10/2016