Housing starts slump 6.5% in May
Economists were expecting housing starts to back down in May, but not this much.
The U.S. Census Bureau and Department of Housing and Urban Development reported starts at a seasonally adjusted annual rate of 1,001,000, 6.5% below the revised April estimate of 1,071,000.
Though May’s figure still broke the million-starts mark, economists were generally predicting a month-over-month drop of 3.9% to 1.03 million starts.
Single-family housing starts fell, but not by as much. At a rate of 625,000, they were down 5.9% from April’s revised figure of 664,000.
Permits lagged behind as well, down 6.4% month-over-month and 1.9% year-over-year to a seasonally adjusted annual rate of 991,000. In a small bit of good news, single-family permits were up 3.7%, suggesting latent demand.
Additionally, this month’s overall housing starts pace is still 9.4% above May 2013’s rate of 915,000.
Industry Dashboard for June 16, 2014
Monthly sales shot up in April in keeping with seasonal patterns, though the year brought progress for the industry. Certain stocks also fell into the negative quadrants.
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