Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
 
 

Blog Home
   Brian Wesbury
Chief Economist
 
Click for Bio
Follow Brian on Twitter Follow Brian on LinkedIn View Videos on YouTube
   Bob Stein
Deputy Chief Economist
Click for Bio
Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube
 
  Housing starts declined 4.3% in December to 529,000 units at an annual rate

 
Implications:  So much for global warming lifting housing activity and slowing utility output in the winter months.  The unusually harsh weather in December – colder than normal temperatures and more snow – pushed up utility output (reported last week) and also slowed housing starts.  But weather-related shifts are all about timing, not the overall level of activity.  We expect a bounce in starts in the months to come as the weather gets back toward normal.  Single-family housing starts fell 9% in December, with that drop concentrated in the Northeast and South, exactly where you would expect given the weather patterns.  Home completions, which are not as vulnerable to bad weather, increased in December, both for single- and multi-family units.  Meanwhile, building permits spiked steeply upward in December.  Much of this was due to changes in building codes in California, Pennsylvania, and New York that went into effect on January 1.  Builders could avoid the tighter rules by breaking ground before 2011.  However, building codes only explain the gain in multi-family permits.  Single-family permits also increased 5.5%, signaling a rebound in home construction in 2011.  That said, given ongoing foreclosures and the rise in rental occupancy, we expect the growth of multi-unit dwellings to keep outpacing the growth of single-family homes.  In other recent news, the Empire State Index, a measure of manufacturing in New York, increased to +11.9 in January from +9.9 in December, signaling a continuation of the national gains in manufacturing.

Click here to view the entire report.
Posted on Wednesday, January 19, 2011 @ 9:55 AM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L. P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial advisors are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA.
First Trust Advisors L.P.
Home |  Important Legal Information |  Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2019 All rights reserved.