(MENAFN- AFP) New US housing construction slowed in October from September, but appeared to stay on a slowly improving track, according to government data released Wednesday.
Housing starts fell 2.8 percent from September to an annual rate of 1.009 million units. September's level was revised upward to 1.038 million units from the originally reported 1.017 million.
Single-family home construction, a key indicator of the strength of the residential construction industry, rose 4.2 percent in October. Multifamily housing starts, typically a more volatile sector, declined 15.5 percent.
Year-over-year, housing starts rose 7.8 percent, with single-family homes up 15.4 percent and multifamily units down 6.8 percent.
Building permits, an indicator of future construction, rose 4.8 percent in October to 1.08 million units but were only up 1.2 percent from October 2013.
"Despite the disappointing headline on US housing starts, the guts of the report were decent," said Jennifer Lee, senior economist at BMO Capital Markets, in a research note.
"Looking ahead, the improving trend should continue, supported by generally low rates, supposedly easier mortgage lending rules... and strong job growth."
Jim O'Sullivan at High Frequency Economics said the weakness was confined to the more volatile multifamily sector.
"Permits showed a broad-based rise. The trend still looks up," he said.
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