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US housing starts surge in July

New US home construction surged in July to an eight-month high, rebounding after a two-month slump, a positive sign of growth in the housing market, official data showed on Tuesday (Aug 19).

WASHINGTON: New US home construction surged in July to an eight-month high, rebounding after a two-month slump, a positive sign of growth in the housing market, official data showed on Tuesday (Aug 19).

Housing starts leaped 15.7 per cent last month from June to an annual rate of 1.093 million, the strongest pace since last November, the Commerce Department said. Building permits, indicating potential construction growth, rose 8.1 per cent to a rate of 1.052 million.

The data came in significantly stronger than expected. Analysts' consensus estimates were for 964,000 starts and 1.001 million permits. New construction of single-family homes, which make up the bulk of the US housing market, rose 8.3 per cent. Starts on multi-family units jumped 33.0 per cent.

Year-over-year, the rebound in the construction sector pushed housing starts up 21.7 per cent and building permits up 7.7 per cent.

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