It's not necessarily a case of "nowhere to go but Up", when it comes to economies these days.
U.S. homebuilding unexpectedly fell in October as activity remains constrained by shortages of materials as well as scarce land and labour.
Figures released Wednesday morning by the U.S. Commerce Department showed housing starts slipped 0.7% to a seasonally adjusted annual rate of 1.520 million units last month. Data for September was revised down to a rate of 1.530 million units from the previously reported 1.555 million units. Economists had forecast starts rebounding to a rate of 1.576 million units.
However, permits for future homebuilding increased 4.0% to a rate of 1.650 million units in October.
Ida, which struck in late August, caused unprecedented flooding and depressed homebuilding in the Northeast and the densely populated South in September. Aside from the weather, homebuilding has essentially been treading water as builders battle shortages and higher prices of raw materials.
Starts have declined from the 1.725 million unit-pace scaled in March, which was more than a 14-1/2-year high. Still, home building remains underpinned by a severe shortage of previously owned homes on the market, which has resulted in record house price increases. There is a huge backlog of houses authorized for construction but not yet started.
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