Building Permits in U.S. Unexpectedly Jump in Sign of Construction Rebound

[Purveyor]

Jan. 20 (Bloomberg) -- Building permits in the U.S. unexpectedly jumped in December, signaling gains in housing will be sustained into 2010 after winter weather depressed construction at the end of last year.

Applications rose 11 percent to a 653,000 annual rate last month, the most since October 2008, the Commerce Department said today in Washington. Work began on houses at a 557,000 pace, down 4 percent from November.

Builders are probably anticipating sales will increase after the government extended a tax credit for first-time buyers through June and expanded it to include some current owners. Record foreclosures and unemployment near a 26-year high represent hurdles that may prevent the industry from strengthening much further.

“After a disappointing December, homebuilding may pick up in the current quarter,” said Ryan Sweet, a senior economist at Moody’s Economy.com in West Chester, Pennsylvania. “Housing has formidable headwinds to overcome, led by foreclosures and double-digit unemployment.”

Permits were forecast to fall to a 580,000 pace, according to the median estimate of 50 economists surveyed by Bloomberg News. Forecasts ranged from 530,000 to 600,000.

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http://www.bloomberg.com/apps/news?pid=20601087&sid=aUuiK.vVAm.o&pos=3

[babylonsister]

1. Good news! Very welcome, thanks. nt

[Egalitariat]

2. It's the same as Cash for Clunkers. We're just realizing 18 months of demand

in the next 6 months when the tax credit expires. It will be followed by 12 months of yawning in the homebuilding industry.

[ShortnFiery]

3. Bunk. More Prisons? eom

[flyarm]

4. Huh? WSJ says housing starts in Dec down 4.0 ..permits don't mean starts.

US Stocks Tumble; China Concerns, Housing Data Stoke Anxiety
Source: Wall Street Journal

NEW YORK (Dow Jones)--U.S. stocks tumbled Wednesday as a report stoked fears that China may curb bank lending and housing starts fell by more than expected last month.

The Dow Jones Industrial Average was down 131 points, or 1.23%, at 10594, with Kraft Foods as the measure's worst performer. Kraft extended its losses from Tuesday, down 2.8%. Bank of America led the Dow after releasing earnings earlier on Wednesday. Bank of America was up 1.1% in early trading after posting a fourth-quarter loss of $194 million. Its revenue from trading fell sharply, but its mammoth consumer loan books showed signs of stabilizing.

The Standard & Poor's 500-share index was down 1%, with only its health care sector in the black, following Tuesday's special election in Massachusetts, which could upset the current state of Congressional health care legislation. The tech sector dragged on Wednesday, after International Business Machines reported after the market's close Tuesday that its fourth-quarter profit grew 8.7%. The tech giant posted higher margins and revenue inched up, but the company provided a 2010 profit outlook that didn't meet some expectations. IBM was down 2.6% on Wednesday.

The tech-heavy Nasdaq Composite was down 0.9%.

Adding to investor anxiety, housing starts slid by 4.0% from the previous month to a seasonally adjusted 557,000 annual rate in December, the Commerce Department said Wednesday. Economists surveyed by Dow Jones Newswires had expected starts would dip by 0.2% to an annual rate of 573,000. However, building permits in December jumped 10.9% to a 653,000 annual rate. Economists had expected permits to rise by 0.2% to a rate of 590,000.

Read more: http://online.wsj.com/article/BT-CO-20100120-709147.htm...