US: Housing construction back in action - Wells Fargo

Housing starts rebounded more than expected to a 1.29 million-unit pace from 1.14 million in September, when hurricanes halted some construction, signaled Wells Fargo's analysts. According to them the stronger recovery bodes well for Q4 residential investment.

Key Quotes: 

“The 13.7 percent increase in housing starts was much stronger than expected. Housing starts are now at a 1.29 million-unit pace which is the strongest in a year. The increase was broadbased as only the West reported slower building.”

“Single-family building returned to its cycle-high pace of 877K units. Multifamily building improved markedly in October but is still down 9.9 percent year-to-date.”

“The pace of building came back stronger than before the storms hit, which suggests the increase from recovery may have already started in Q4. The increase in permits issued also bodes well for residential investment in coming months.”