Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Economic Watch: Hurricanes Hit Housing, Industrial Production

Home building in the U.S. slowed in September, according to a new report, while a separate one showed that the total amount of output from the nation’s factories, mines and utilities moved higher during the month. Results of both reports would have been better had it not been for two hurricanes.

Evan Lockridge
Evan LockridgeFormer Business Contributing Editor
Read Evan's Posts
October 18, 2017
Economic Watch: Hurricanes Hit Housing, Industrial Production

 

4 min to read


Home building in the U.S. slowed in September, according to a new report, while a separate one showed that the total amount of output from the nation’s factories, mines and utilities moved higher during the month. Results of both reports would have been better had it not been for two hurricanes.

U.S. housing starts fell 4.7% last month to a seasonally adjusted annual rate of 1.127 units, according to the Commerce Department. That's the slowest pace since September 2016 and it follows an upwardly revised August level of 1.183 million units.

Ad Loading...

In contrast, single-family home starts, the biggest share of the market, showed a 2.4% increase in September from August with a year-over-year gain of 9.3%.

The same report also showed that the number of building permits issued during September, an indicator of future construction levels, fell 4.5% from the month before.

Both the number of starts in September, as well as the number of new building permits issued, were below a consensus estimate from analysts.

Not surprisingly, the South, where the most home construction happens, saw the number of home starts fall 9.3% last month, its biggest drop since October 2015. Single family home starts fell even greater, 15.3%, hitting a more than one-year low.

“Housing has been generally slowing and looks to end 2017 no better than flat. Still, permits and completions for single-family homes are solid pluses,” said analysts at Econoday.

Ad Loading...

Despite the decline in homebuilding activity, sentiment among home builders surged in October, according to survey released Tuesday by the National Association of Home Builders, hitting its highest level since May.

“It is encouraging to see builder confidence return to the …levels we saw in the spring and summer,” said NAHB Chief Economist Robert Dietz. “With a tight inventory of existing homes and promising growth in household formation, we can expect the new home market to continue to strengthen at a modest rate in the months ahead.”

Industrial Production Posts Modest Gain

Meantime, a separate reported showed that industrial production rose 0.3% in September, according to the Federal Reserve, while the August and July performances were revised, though still showing declines of 0.7% and 0.1%, respectively.

“The continued effects of Hurricane Harvey and, to a lesser degree, the effects of Hurricane Irma combined to hold down the growth in total production in September by 0.25 of a percentage point,” said the Federal Reserve.

For the third quarter as a whole, industrial production fell at an annual rate of 1.5%. Excluding the effects of the hurricanes, the index would have risen at least 0.5%, according to the report.

Ad Loading...

Manufacturing output edged up 0.1% in September, but fell at a 2.2% annual rate in the third quarter. The indexes for mining and utilities in September rose 0.4% and 1.5%, respectively.

At 104.6% of its 2012 average, total industrial production in September was 1.6% above its year-earlier level.

Capacity utilization for the industrial sector increased 0.2 of a percentage point in September to 76%, a rate that is 3.9 percentage points below its 1972–2016 average.

In analyzing the numbers, Wells Fargo Securities said “do not rush to judgment on the modest gain in industrial production for September.”

It pointed out that in 2015 industrial production fell in 11 out of 12 months as a retrenchment in the energy sector weighed on mining output along with other factors like a then stronger dollar and weak global growth backdrop.

Ad Loading...

In 2016, output fell only six out of 12 months as that rebalancing in the energy sector was still a factor, but the global backdrop was showing improvement as industrial production was regaining its footing.

This year, there had been only one monthly slip before Harvey knocked industrial production into negative territory.

“Looking into the remaining months of the year and considering the outlook for 2018, we look for industrial production to ramp up modestly,” said Tim Quinlan, senior economist at Wells Fargo Securities. “The factors that weighed on growth in recent years have either reversed altogether or at least faded. The dollar’s march higher has reversed this year, global growth has been firming and energy prices have broadly stabilized, which has lifted mining output again. On that basis our outlook is for 2% to 2.5% growth for industrial production in 2018.”

Related: Trucking Drives another Record-Setting Month in For-Hire Freight Movements

More Fleet Management

Daimler-Class8 partnership.
Fleet Managementby News/Media ReleaseFebruary 2, 2026

DTNA Partners with Class8 to Expand Digital Services for Freightliner Owner-Operators

A new partnership brings free wireless ELD service plus load optimization and dispatch planning tools to fourth- and fifth-generation Freightliner Cascadia customers, with broader model availability planned through 2026.

Read More →
SponsoredFebruary 1, 2026

Reducing Fleet Downtime with Advanced Diagnostics

This white paper examines how advanced commercial vehicle diagnostics can significantly reduce fleet downtime as heavy duty vehicles become more complex. It shows how Autel’s CV diagnostic tools enable in-house troubleshooting, preventive maintenance, and faster repairs, helping fleets cut emissions-related downtime, reduce dealer dependence, and improve overall vehicle uptime and operating costs.

Read More →
SponsoredFebruary 1, 2026

Stop Watching Footage, Start Driving Results

6 intelligent dashcam tactics to improve safety and boost ROI

Read More →
Ad Loading...
M&A illustration with Werner and FirstFleet logos
Fleet Managementby Deborah LockridgeJanuary 29, 2026

Werner Expands Dedicated Fleet Nearly 50% With FirstFleet Acquisition

The $283 million acquisition of FirstFleet makes Werner the fifth-largest dedicated carrier and pushes more than half of its revenue into contract freight.

Read More →
Bobit Business Media B2X Rewards.
Fleet Managementby News/Media ReleaseJanuary 29, 2026

Bobit Business Media Launches B2X Rewards Engagement Program

B2X Rewards is a new, gamified rewards program aimed at driving deeper engagement across BBM’s digital platforms, newsletters, events, and TheFleetSource.com.

Read More →
Trucking Trends series graphic
Fleet Managementby Deborah LockridgeJanuary 29, 2026

AI is Reshaping Trucking in 2026, from the Back Office to the Shop

Trucking’s biggest technology shifts in 2026 have one thing in common: artificial intelligence.

Read More →
Ad Loading...
Column graphic illustration with Deborah Lockridge head shot and a small fleet truck in the background
Fleet Managementby Deborah LockridgeJanuary 27, 2026

Why Small Trucking Fleets Are Still Standing [Commentary]

Why discipline, relationships, and focus have mattered more than size for smaller trucking fleets during the freight recession.

Read More →
Fleet Managementby Deborah LockridgeJanuary 23, 2026

Cargo Theft Is Surging. A Bill in Congress Could Help. [Video]

Cargo theft losses hit $725 million last year. In this HDT Talks Trucking Short Take video, Scott Cornell explains how a bill moving in Congress could bring federal tracking, enforcement, and prosecutions to help address the problem.

Read More →
CargoNet infographic showing 2025 cargo theft trends
Fleet Managementby Deborah LockridgeJanuary 22, 2026

Cargo Theft Losses Jump 60% in 2025 as Criminals Target Higher-Value Freight

Cargo theft activity across North America held relatively steady in 2025 — but the financial damage did not, as ever-more-sophisticated organized criminal groups shifted their cargo theft focus to higher-value shipments.

Read More →
Ad Loading...
Phillips Connect -- McLeod smart trailer TMS.
Fleet ManagementJanuary 22, 2026

Phillips Connect, McLeod Integrate Smart Trailer Data into TMS Workflows

A new partnership between Phillips Connect and McLeod allows fleets to view trailer health, location, and cargo status inside the same McLeod workflows used for planning, dispatch, and execution.

Read More →