Housing starts look positive in September from August but not after taking into account a downward revision to the prior month. Housing starts in September rose 0.5 percent, following a revised 1.0 percent decline in August. The September pace of 0.590 million units annualized was down 28.2 percent year-on-year and fell short of the consensus forecast for 0.615 million units. Importantly, August was revised down from 0.598 million units to 0.587 million units annualized. The advance in September was led by the single-family component which increased 3.9 percent after dropping 4.7 percent the month before. In contrast, the single-family component fell 15.2 percent after rising 20.7 percent in August.
Here is the chart:
Click for a larger image.
I love it when a number comes higher, but below expectations. I just find it laughable that anyone listens to economic forecasters to that degree.
Anyway -- the main issue with the above chart is this: there is more evidence of the housing market bottoming. That's the main point.
