US housing starts and permits fall by less than expected in October

Homebuilders in the US broke ground on slightly more new houses last month than forecast by economists.

According to the Department of Commerce, in seasonally adjusted terms, the annual rate of housing starts declined at a month-on-month pace of 4.2% to reach 1.425m (consensus: 1.42m).

Meanwhile, the prior month's pace was revised up from 1.439m to 1.488m.

Starts were weakest in the Northeast, where they fell by 34.7%, declining by 11.1% in the Midwest and by 10.6% in the West.

In the South on the other hand they increased by 6.7%.

Housing permits decreased by 2.6% over the month to reach 1.526m (consensus: 1.517m).