U.S. homebuilding rebounded sharply in December as a firming economy boosts demand for rental housing.
Reuters reports the economy’s brightening prospects were underscored by other data today showing factory activity in the mid-Atlantic region accelerating to a two-year high this month, amid jumps in new orders, employment and inventories.
In addition, manufacturers reported paying more for raw materials and asking for higher prices for their goods, mirroring other recent factory surveys. This suggests that a broad increase in inflation could be on the way.
The reports came as Republican Donald Trump is preparing to be sworn in as president on Friday, taking over from President Barack Obama, whose administration’s policies have been credited with pulling the economy from the 2007-09 recession.
“The economy is doing great, whichever way you look at it,” says Harm Bandholz, chief U.S. economist at UniCredit Research in New York. “The labor market is close to full employment, and the housing market continues to heal. Trump is inheriting a strong economy.”
Housing starts jumped 11.3% to a seasonally adjusted annual rate of 1.23 million units last month, the Commerce Department says. Starts were driven by a 57.3% surge in the construction of multifamily housing units, which offset a 4% drop in single-family starts.
