Dive Brief:
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Housing starts rose 6.3% in September after a taking a nosedive in August, fueling new optimism for a strong housing recovery.
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Most of the gain came from multifamily construction, which ballooned by 18.5% after a weak showing in August, according to a Friday report by the Census Bureau.
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The report followed a Thursday announcement by the National Association of Home Builders that builder confidence waned in October after reaching its highest level in nine years a month earlier.
Dive Insight:
Coupled with news on Friday that consumer confidence unexpectedly rose in October, the rise in housing starts could signal that “the underlying strength of the U.S. economy remains intact,” economist David Berson, of Nationwide Mutural Insurance in Columbus, Ohio, told Reuters.