Where’s that spring rebound? No sign of it in today’s update on residential construction activity. Housing starts in the US fell more than expected in May, dropping to an annual rate of 1.001 million units, according the Census Bureau. That’s down from the revised 1.071 million in April. The crowd was looking for something better, with the consensus forecast calling for a kinder, gentler retreat to 1.036 million. There was also disappointing news for newly issued building permits, a leading indicator for residential construction. On a monthly basis the numbers don’t look so bad, but there’s a worrisome trend brewing when we review the data in year-over-year terms.
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