Octobers Building Permits and Housing Starts data disappointed the market on the whole. Building Permits is the annualized number of new residential building permits issued during the previous month and is looked at to gauge new construction. Housing Starts are the annualized number of new residential buildings that began construction during the previous month and is considered a leading indicator of economic health as it has ripple effects on jobs. The forecast for building permits called for 0.57 million, but the actual headline number was 0.55 million. Although this was a disappoint on the forecast, it was inline with Septembers data. The forecast for housing starts called for 0.59 million, but the actual headline number was 0.52 million, which was also a disappointment compared to Septembers number. I think betting on housing to create jobs is a failed strategy, there is only so much you can expand and we need to look at how we can grow jobs through agriculture and energy creation (in the U.S.), which would be a more productive use of jobs.
| Economic Indicator | Actual | Forecast |
|---|---|---|
| Building Permits | 0.55M | 0.57M |
| Housing Starts | 0.52M | 0.59M |
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