What is Macro Pulse?

Macro Pulse highlights recent activity and events expected to affect the U.S. economy over the next 24 months. While the review is of the entire U.S. economy its particular focus is on developments affecting the Forest Products industry. Everyone with a stake in any level of the sector can benefit from
Macro Pulse's timely yet in-depth coverage.


Monday, January 20, 2014

December 2013 Residential Permits, Starts and Completions

Click image for larger view
Click image for larger view
Total housing starts in December retreated to a seasonally adjusted and annualized rate (SAAR) of 0.999 million units, down by 108,000 units (-9.8 percent) from November’s peak of 1.107 million units -- the biggest fallback since April 2013. The drop was about evenly split between single-family (-50,000 units, or -7.0 percent) and multi-family (-58,000 units, or -14.9 percent) starts.
Click image for larger view
The drop in the not-seasonally adjusted data was more noticeable, and represented the largest November-to-December retreat since 2007. Total starts fell by 18,500 units (22.0 percent) relative to November; single-family retreated by 8,800 units (-17.2 percent), while multi-family contributed 9,700 units (-29.4 percent). The year-over-year gain was cut back to just 4.0 percent.
Click image for larger view
Click image for larger view
Completions also “took a hit,” dropping by 90,000 units to 744,000 units (SAAR). Once again the components were roughly comparable, with the single-family segment contributing -49,000 (-8.2 percent) and the multi-family -41,000 (-17.4 percent). Total completions were up 9.3 percent over year-earlier levels.
Click image for larger view
Click image for larger view
Total permits declined modestly in December, posting a 31,000 unit (-3.0 percent) drop to 0.986 million units (SAAR). All of the retreat was contained in the single-family component (-4.8 percent). As a forward-looking indicator, permits appear to be suggesting that the surge in residential construction activity is waning. Year-over-year percentage changes have trended lower throughout 2013 and (although higher than in November) were 11.5 percent above December 2012 levels.
Click image for larger view
The foregoing comments represent the general economic views and analysis of Delphi Advisors, and are provided solely for the purpose of information, instruction and discourse. They do not constitute a solicitation or recommendation regarding any investment.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.