Housing Starts Fall More Than Expected

Housing starts fell 6.5% month-over-month in May, to an annualized pace of 1.001 million units.

This was worse than expectations for a 3.9% mum fall to an annualized pace of 1.03 million units.

April’s number was revised down to show a 12.7% rise to an annualized pace of 1.071 million units. This compares to an initial reading of a 13.2% rise to 1.072 million units in April.

Meanwhile, building permits tumbled 6.4% to 991,000, worse than expectations for a 0.9% fall to of 1.05 million. This compares with a downwardly revised 5.9% rise in April to 1.059 million.

Ian Shepherdson at Pantheon Macroeconomics writes that this is a “correction after “starts overshot the pace implied by permits.”

Homebuilder confidence, meanwhile, improved in June.

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