US home building permits surged in October to the highest level in five years, suggesting stronger momentum ahead in the recovering housing market, government data shows.

Building permits, a signal of potential residential construction growth, rose to an annual rate of 1.034 million in October, up 6.2 per cent from September’s 974,000, the Commerce Department said on Tuesday. The growth in building permits over the past two months was well above analysts’ average estimate of 932,000…