Photo: AP Images
UPDATE:Building permits surged to their highest levels in more than three years, hitting an annual pace of 780,000, sharply outpacing expectations.
Economists polled by Bloomberg had forecast a shallower 730,000 print.
However housing starts missed expectations, declining 4.8 per cent to a 708,000 pace following a substantive upward revision to April’s results, new data from the Census Bureau shows.
Tempering that fall was an improvement in single family housing starts, which gained 3.2 per cent month-on-month.
In all regions, private-housing starts grew year-on-year, led by a 39.5 per cent jump in the South. Nonetheless, all regions except the West posted weaker May results compared to April.
Minutes away from the key data point of the day: Housing Starts.
Economists polled by Bloomberg forecast the annual pace of starts accelerated by 0.7 per cent in May to 722,000.
Building permits are also scheduled for release at 8:30 a.m. ET, with consensus for a 1.0 per cent increase to a 730,000 pace.