US housing data provides 'beacon of light' for investors

The pace of new housing starts in the US has accelerated to its fastest rate in three years, providing a bright spot for US investors unsettled by weakening macro data.

Housing starts rose 6.9% last month to a seasonally adjusted annual rate of 790,000 units, the highest rate since October 2008, according to the Commerce Department. Its report said the increase was spread broadly throughout the sector, with ground-breaking for single-family homes up 4.7%, a segment which accounts for most of the market. Investors have been eyeing the stabilising US housing sector, which collapsed five years ago, as a bright spot amongst otherwise disappointing macro data this year, including rising unemployment, weak retail sales and consumer sentiment. According ...