Housing starts and building permits data for January 2016 will be out at 8:30 a.m. ET on Wednesday.
Economists are expecting that housing starts rose by 2.0% to an annualized pace of 1.173 million homes.
As for building permits, economists expect that they fell by 0.3% to an annualized pace of 1.2 million.
Last month, housing starts disappointed with a 2.5% decline to an annualized pace of 1.15 million homes.
Meanwhile, building permits fell 3.9% to an annualized pace of 1.23 million, which was better than expected.
"Starts were sluggish in Q4, at an average pace of 1.133mn units (Q3: 1.158mn). At the same time, however, construction payrolls have been rising steadily and suggest that the housing market continues to improve. We expect starts to rise through Q1 of this year and the housing market to continue its gradual recovery," wrote Barclays' Henry Skeoch ahead of the report.
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