US: Housing Starts falter as hurricanes batter the south – Nomura

Analysts at Nomura point put that the US housing starts fell 5.3% m-o-m to 1201k saar in September, below market expectations but above Nomura’s forecast (Nomura: 1179k, Consensus: 1210k).

Key Quotes

“Starts for August were revised down to 1268k from a previously reported 1282k. While incoming data for September were likely lowered by Hurricane Florence, structural factors appear negative to the housing market in general.”

“The topline numbers were dragged downward by a notable slowdown in the South which includes both North and South Carolina, two states heavily impacted by Hurricane Florence. Housing starts fell 13.7% m-o-m in the South with a 6.8% m-o-m decline in single-family housing starts.”

“Despite the expected boost from reconstruction efforts, structural factors will continue to dampen housing market activity.”