US residential construction permits, a leading indicator of new construction, decreased 0.6 per cent in September compared to the revised August estimate, to a seasonally adjusted annual rate of 1,241,000.  This is 1.0 per cent below the September 2017 estimate of 1,254,000.  Permits for single unit structures increased by 2.9 per cent in September, while permits for structures with 5 or more units decreased by 9.3 per cent.  Permits for structures with 2 to 4 units increased 11.4 per cent in September.

On a year-to-date basis, permits are up 3.3 per cent in the first nine months of 2018 compared to the same period in 2017.  Permits for single unit structures were up 5.8 per cent from January to September, while permits for 2 to 4 unit structures were up 3.3 per cent and permits for structures with 5 or more units were down 1.6 per cent.

US housing starts were down 5.3 per cent in September 2018 compared to the revised August estimate, to a seasonally adjusted annual rate of 1,201,000 units.  This month's estimate is 3.7 per cent above the September 2017 estimate of 1,158,000.  Year-to-date, housing starts are up 6.2 per cent over the same period in 2017.

US housing starts are an important indicator for Nova Scotia's wood exports. Though not a perfect predictor, US housing starts and the value of Nova Scotia's wood exports follow similar directions over the long-term.

Source: US Census Bureau New Residential Construction