US: Expect a decent rebound of 1.9% m-o-m in October housing starts - Nomura

Analysts at Nomura expect a decent rebound of 1.9% m-o-m in October housing starts of US to an annualized rate of 1148k after hurricanes lowered the starts in the south.

Key Quotes

“The negative impact from the hurricanes on single-family housing starts will likely be reverted gradually. Permits for new single-family housing construction also improved in September. However, we expect continued weakness in multifamily housing starts to weigh down the total starts. Given higher vacancy rates in the multifamily housing sector, it appears likely that growth in multifamily housing construction would remain sluggish. For housing permits, we expect a rebound of 2.4% m-o-m to an annualized rate of 1255k.”