New home construction in the United States hits a five-month high, with building permits rising simultaneously.

The number of new houses started in the United States rose to a five-month high in December, as home builders accelerated construction pace using lower borrowing costs. Government data, which was delayed due to the autumn government shutdown, showed that new housing starts in the US increased by 6.2% in December, equivalent to an annual rate of 1.4 million units. This figure was higher than the forecasts of all economists surveyed by Bloomberg. The growth was broad-based, with both single-family homes and apartment projects starting construction at the end of the year. The stronger construction data indicates that, despite builders still dealing with a backlog of new home inventory, they are more confident about the market outlook at year-end.