U.S. Housing Starts Fell Last Month, Led by Multifamily Slowdown
“U.S. housing starts decreased in September, driven by a pullback in multifamily construction, as lingering supply-chain constraints, shortages of skilled labor and elevated materials costs continue to challenge builders. Residential starts fell 1.6% last month to a 1.56 million annualized rate, according to government data released Tuesday. The median estimate in a Bloomberg survey called for a 1.62 million pace.”
U.K. Rates Market Signals Any BOE Hikes May Be Short-Lived
“The U.K. rates market is signaling that the Bank of England may have to rapidly undo any policy tightening it delivers over the next year and a half. Inverted curves occur when shorter-term rates climb above longer-term ones, which is interpreted by some as a sign of an impending economic slump. This was seen in the sterling overnight index swaps curve, which saw an accelerated repricing this week to bet on about 110 basis points of rate hikes over the next year. That would take the BOE rate to around 1.20% by the end of next year.”
China’s Property Sector Shrinks For 1st Time Since Pandemic
“China’s property and construction industries contracted in the third quarter for the first time since the start of the pandemic, weighed by a slump in real estate. Output in the real-estate industry, a mainstay of the economy as its activities supports sectors from furniture to commodities, shrank 1.6% from a year ago, according to a supplemental report on gross domestic product released Tuesday by the National Bureau of Statistics. The sector grew 7.1% in the three months through June and this contraction is the first since the first quarter of 2020.”
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