US DATA: Sept housing starts surprise at +15% to 872k (highest
since Jul 2008 and far more than the 770k expected), and permits +11.6%
to 894k, confirming the strength. 1-fam starts +11% to 603k and multis
+25%; only the NE region was weak at -5.1%, so there was no apparent
hurricane impact. Permits advanced in most areas and most sectors;
exception was -3.7% in 2-4-unit overall permits, and even this area
merely is pausing at a higher level. These data show unmitigated
strength, with a decline in units not started also suggesting gains
ahead. Total units completed were just +0.4%, which indicates there may
need for construction hiring to adjust hsg higher. Even with all this
good news recall that 1fam starts peaked at 1.8m units in Jan’06, about
3x where they stand currently.