Building Permits Surge To Highest Level Since 2008, Hit 780K

U.S. housing aerial shot

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.

ORIGINAL:

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.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.