U.S. factory production showed promising output in September as production rose as output increased.
Factory output rose for both non-durable and durable goods, signaling an intense interest rate series from the Federal Reserve increases have not stopped demand in certain sectors amid increased inflation in recent months.
However, the Fed’s efforts to reduce inflation appear to have affected the housing market.
The National Association of Home Builders (NAHB) released data along with the Wells Fargo Housing Market Index (HMI), which showed that sentiment for single-family home builders has dropped by half from just six months ago.
NAHB President Jerry Konter said, “High mortgage rates … have significantly dampened demand, especially for potential first-time and first-generation homebuyers.” He said: “This situation is unhealthy and unsustainable.”
Robert Dietz, NAHB’s chief economist, said, “This will be the first year since 2011 to see a decline in single-family starts.”
NAHB/HMI data showed its indicator of market conditions fell 8 points to 38 for October from the previous month.
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