US GDP tracking update raised-  Nomura

Analysts at Nomura explained that today’s single-family housing starts and permits data were slightly stronger than we had expected, suggesting that residential investment in Q3 may be greater than we have previously anticipated. 

Key Quotes:

"While multifamily housing starts came in weaker than expected, considering the difference in construction expenditure per unit between single-family and multifamily homes, and a weak relationship between multifamily starts and actual construction spending which is estimated on an accrual basis, we think that the positive impact from strong single-family starts outweighs the decline in multifamily starts. Thus, we raised our Q3 GDP tracking estimate by 0.1pp to 3.0% q-o-q saar."