A recent report from the Commerce Department, released on Friday, reveals a significant surge in new residential construction within the United States for December, exceeding prior expectations. According to the data, housing starts experienced a remarkable increase of 15.8%, reaching an annual rate of 1.499 million. This marks a substantial recovery following a 3.7% decline in November, where the revised rate stood at 1.294 million.
Preliminary forecasts from economists had estimated a modest rise in housing starts, projected at 2.4%, elevating the annual rate to 1.320 million from the initially reported figure of 1.289 million for November.
In contrast, the report highlights a slight decline in building permits, which fell by 0.7% to an annual rate of 1.483 million in December. This comes after a notable 5.2% increase in November, with the revised rate recorded at 1.493 million. Although building permits serve as a predictive measure of future housing demand, they were forecasted to decrease by 3.0%, reaching an annual rate of 1.460 million, down from the previously reported 1.505 million for November.
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