Despite being near record lows housing starts surprised to the upside this morning. All in all, housing remains very weak, however, with the string of data that has surprised to the upside in recent weeks it’s clear that analysts have just gotten too negative with regards to the macro outlook. Econoday details this morning’s report:
“Housing starts showed unexpected strength in August with even the single-family component increasing. Housing starts in jumped 10.5 percent after rising a modest 0.4 percent in July. The August annualized pace of 0.0.598 million units clearly topped analysts’ expectations for 0.550 million units and is actually up 2.2 percent on a year-ago basis. The gain in August was led by a 32.2 percent surge in multifamily starts, following a 36.0 percent increase in July. The single-family component rebounded 4.3 percent after dipping 6.7 percent in July.”
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.