U.S. Housing Starts Plunge 15.4% to 1.18 Million as Permits Signal Weak Rebound
Updated
Updated · Kitco NEWS · Jun 16
U.S. Housing Starts Plunge 15.4% to 1.18 Million as Permits Signal Weak Rebound
3 articles · Updated · Kitco NEWS · Jun 16
Summary
U.S. housing starts fell 15.4% in May to a seasonally adjusted 1.18 million annualized units, far below the 1.43 million economists expected.
April starts were revised down to 1.39 million, and May construction was 8.9% below a year earlier, reinforcing signs that homebuilding remains sluggish.
Building permits — a gauge of future construction — slipped 0.7% to 1.413 million, suggesting the housing market is unlikely to rebound strongly later this year.
LPL Financial said the drop was unusually steep and warned weaker residential investment will likely drag on second-quarter GDP after already shaving 0.25 point off Q1 growth.
Gold held near session highs after the data, with spot prices around $4,349 an ounce, up nearly 1%, as investors kept a steady safe-haven bid.