Both inflation and housing starts are up for the month of September according to data provided by the U.S. Department of Labor and Department of Commerce, respectively. The core rate of inflation (excluding costs of food and energy) edged up 0.1%, which was less than predicted, while housing starts surged 15% from the previous month. Even so, housing permits dropped 7% for September, suggesting next month may bring a correction to September’s impressive gains. For more on this continue reading the following article from TheStreet.
Inflation at the consumer level in September ticked up 0.3%, in line with estimates, according to the Labor Department’s consumer price index.
The rise in inflation follows a 0.4% uptick in August. The core rate, which excludes food and energy and is considered the most accurate gauge of inflation, edged up by 0.1%. Economists had expected it to tick 0.2% higher after similar growth in August.
Compared to September of last year, consumer prices have increased 3.9%. Prices of clothing and computers dropped, countered by gains in gas, tobacco, and cars. Gas prices alone surged 2.9% year over year.
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Also this morning, the number of U.S. homes that builders began work on showed a surprise jump in September as demand for apartments grew from those looking to rent. The number of housing starts jumped 15%, according to the Commerce Department. The recent figures reverses the trend from August was housing starts dropped 7%..
Annually, housing starts rose to 658,000, compared to the 595,000 forecasted figure. August housing starts were upwardly revised by 1,000 to 572,000.
The gains in housing starts was overwhelming from multi-family homes, which surged 51.3% to a rate of 233,000. While single family starts rose 1.7%, the gain wasn’t nearly as impressive.
Meanwhile, September building permits slumped 5%. Economists had expected building permits to decline to 610,000, from 620,000 previously. "Broadly speaking this set of data was a bit friendlier than anticipated," writes David Ader, strategist from CRT Capital, in a research note.
This article was republished with permission from TheStreet.
