US housing starts spikes to 13-year-peak; factory activity ticks up

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US housing starts spikes to 13-year-peak; factory activity ticks up

On Friday, the 17th of January 2020, US Government data had revealed an upbeat reflection of US housing starts amid a decade-low mortgage rates, while shrugging off some slowdown fears, factory output ticked up in December, pointing towards a solid recovery of the United States’ housing market which in effect could aid the world’s largest economy to hang on to its longest economic expansion in record, currency at its straight 126th month of gains in a row.

Aside from a robust US housing starts in December that surged 16.9 per cent to 1.608 million units last month, climbing to a reading never witnessed since December 2006, there had also been some encouraging reports on US factory activity which posted its second straight month of gain in December.

Besides, as US Housing starts mounted more than 40.8 per cent on an annualized basis last month, wildly beating an analysts’ estimate, adding that a multi-year low mortgage rate would likely to provide an unprecedented boost to the United States’ longest expansion in history, a chief economist at Naroff Economic Advisors in Holland, Pennsylvania, Joel Naroff said following the release of US housing starts data on Friday (January 17th), “The shockingly large rise in home construction is likely to provide an unexpected boost to growth.

However, the first quarter of 2020 it might be a lot softer. ”