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Housing starts surged 12.1 percent in December to 954,000 at an annualized rate. November housing starts were revised down to 851,000 from a prior reading of 861,000.
Economists expected starts to rise just 3.3 percent to 890,000.
Building permits climbed 0.3 percent to 903,000, missing expectations of a 0.5 percent rise.
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