U.S. housing starts are increasing, with the numbers from August in and showing that they are higher. Indeed, this represents a sharp turnaround from the state of affairs earlier this year in the U.S. The Financial Times reports on last month’s housing data:

Thursday’s data continue a sharp turnround for residential construction and signal that the stricken residential real estate market may have bottomed out. In April, new construction fell to a 50-year low but has since surged by 25 per cent.

Many economists, however, see the monthly rise as a mixed blessing. Some argue that renewed building activity is a sign of health in the housing market and the wider economy, but others contend that the overhang of housing inventory needs to be slashed for a recovery to occur.

Of course, there is still a great deal of inventory out there. My husband has been complaining about new building in our subdivision — even though there are still several existing homes available for sale. The economists concerned about this state of affairs have a good point. Until inventory is low enough that there is true demand for more new housing, the recovery is not likely to take place.

The housing starts data, though, does help support Ben Bernanke’s assertion that the recession has ended. There will still be a long road to recovery, but at least things are getting started.