Housing Starts Srong, Permits Flat

Housing starts are strong but permits are flat in what are mixed indications for the nation's housing sector. July starts rose a strong 2.1 percent to a 1.211 million annualized rate which comes on top of June's 5.6 percent surge. Starts for single-family homes, the most important category, rose a very respectable 0.5 percent in July but where dwarfed by a 5.0 percent surge for multi-family homes. These results point to ongoing strength for construction.

But there may be less strength ahead based on permits which show little change, at a 1.152 million rate in July. Here the single-family reading is down 3.7 percent, offset by a jump in multi-family permits of 6.3 percent. But single-family homes are costlier to build and the decline in permits here is a major offset to the gain for multi-family units.

The housing sector is a positive for this year's economy though it's performance continues to be less than smooth.

Recent History Of This Indicator:
A sizable decline is expected for housing starts in July to a 1.180 million annualized rate offset however by expectations for a sizable rise in housing permits to a 1.160 million rate. Starts and permits have been edging higher at a slow but steady rate this year in what is a positive for construction and overall economic growth.