The number of homes under construction in the US rose at an annualised rate of 872,000 during September, which makes for a 15 per cent increase on the previous month's tally and a 48 per cent surge on year ago levels, according to the latest figures out on Wednesday from the Census Bureau.

That is the highest reading in four years and will make for welcome news to authorities' ears, given that the sector's weakness and home prices were (are) at the epicentre of the financial crisis.

The consensus estimate had been for an annualised rate of 770,000, after last month's reading of 758,000.

Also worth noting, some market commentary is highlighting the fact that the Federal Reserve's monetary policy is not the sole factor behind the gains. Thus, the number of households in the US grew by 2% in 2011 - the most in a decade - according to Census Bureau data.

Acting as a backdrop, the supply of new homes available for purchase has diminished. There number of properties available for sale fell to 4.5 months' equivalent in August -at the current sales pace- matching July as the lowest level in almost seven years, recent Commerce Department figures showed.

Lastly, construction permits - a leading indicator for activity in the sector - grew by 11.6% month-on-month, to 894,000 (consensus: 810,000), for a 45.1% year-on-year rate of increase.

AB

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