U.S. housing starts and building permits surge in December

The Commerce Department reported on Thursday the housing starts surged by 5.8 percent m-o-m in December to a seasonally adjusted annual pace of 1.669 million (the highest since September 2006), while building permits jumped by 4.5 percent m-o-m to a seasonally adjusted annual rate of 1.709 (the highest level since August 2006).

Economists had forecast housing starts decreasing to a pace of 1.560 million units last month and building permits dropping to a pace of 1.600 million units.

Data for November was revised to show homebuilding growing to a pace of 1.578 million units, instead of increasing at a rate of 1.547 million units as previously reported.