Jumpin’ ju-ju bones this is the best recession ever! The Commerce Department announces U.S. housing starts in December jumped a whopping 16.9 percent in December with 1.608 million units. Blowing away forecast expectation of 1.375 million units; with the largest gain since 2006.
Cross referencing the latest median wage report from the Bureau of Labor Statistics [Table 4] shows that average wages in the construction sector in the fourth quarter increased 9.3%. There’s obviously a lot of demand for workers in the construction industry.
WASHINGTON (Reuters) – 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 on Friday showing production at factories increasing for a second straight month in December.
[…] “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.
Housing starts jumped 16.9% 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 by Reuters had forecast housing starts would increase to a pace of 1.375 million units in December. (read more)
One of the excellent details within the latest data is the single family home growth and specifically the regions with the largest gains. Remember, MAGAnomics is the reversal of prior economic policy that was destroying the mid-west and upper-mid-west manufacturing centers (creating the rust belt).
(Via CNBC) Single-family homebuilding, which accounts for the largest share of the housing market, jumped 11.2% to a rate of 1.055 units in December, the highest level since June 2007. Single-family housing starts rose in the Midwest and the populous South. They, however, fell in the Northeast and West. (more)
A genuine MAGAnomic revitalization of the exact areas that were most impacted by the loss of manufacturing jobs driven to Asia. This news is WINNING!
Home ownership is a big decision…. a decision at the heart of the middle-class American family. These purchases are not made unless workers and families feel confident about their financial and employment stability. Great news all around.