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QINGDAO TODAY
在线翻译:
szdaily -> World Economy -> 
US housing starts at 13-year high, factory output gains
    2020-01-20  08:53    Shenzhen Daily

U.S. homebuilding surged to a 13-year high in December as activity increased across the board, suggesting the housing market recovery was back on track amid low mortgage rates, and could help support the longest economic expansion on record.

There was also some encouraging news on manufacturing, with other data Friday showing production at factories increasing for a second straight month in December, indicating some stabilization in one of the industries hardest hit by the Trump administration’s 18-month trade dispute with China.

“The shockingly large rise in home construction is likely to provide an unexpected boost to growth,” said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania. “However, the first quarter of 2020 it might be a lot softer.”

Housing starts jumped 16.9 percent to a seasonally adjusted annual rate of 1.608 million units last month, the highest level since December 2006. The percentage gain was the largest since October 2016. Groundbreaking activity last month was likely flattered by unseasonably mild weather and probably overstates the health of the housing market.

Data for November was revised higher to show homebuilding rising to a pace of 1.375 million units, instead of advancing to a rate of 1.365 million units as previously reported.

Economists polled previously had forecast housing starts would increase to a pace of 1.375 million units in December.

Housing starts soared 40.8 percent on a year-on-year basis in December. An estimated 1.290 million housing units were started in 2019, up 3.2 percent compared to 2018.

The rise in construction, together with an increase in completions and the inventory of homes under construction, could ease a housing shortage that has constrained sales over the last couple of years. Housing completions increased 5.1 percent to a rate of 1.277 million units in December.

Realtors estimate that housing starts and completion rates need to be in a range of 1.5 million to 1.6 million units per month to plug the inventory gap. The stock of housing under construction rose 2.0 percent to 1.192 million units, the highest level since March 2007.

“It’s going to take more than increased construction to completely emerge from the ongoing and historic inventory shortage, but more home building certainly won’t hurt,” said Matthew Speakman, economist at online real estate firm Zillow. “For now, it appears that builders are game for the challenge.”

The housing market is regaining momentum after the Federal Reserve cut interest rates three times last year, pushing down mortgage rates from last year’s multi-year highs. Though a recent survey showed confidence among homebuilders dipped in January, it remained near levels last seen in mid-1999. (SD-Agencies)

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