New data from the Commerce Department released Wednesday showed a notable rebound in U.S. homebuilding activity at the end of the year.
Housing starts climbed 6.2% in December to a seasonally adjusted annual rate of 1.404 million units, following a 3.9% rise in November to a revised 1.322 million pace. The December figure came in well above economists’ expectations, which had called for a rate of 1.33 million units.
The report also indicated stronger momentum in future construction activity. Building permits increased 4.3% to an annual rate of 1.448 million in December, reversing a 1.6% decline in November, when permits had fallen to a 1.388 million pace.
Permits, widely viewed as a leading indicator of upcoming housing demand, were forecast to reach an annual rate of 1.400 million, underscoring the upside surprise in the latest data.