Reuters
U.S. housing starts fell in May after a hefty increase the prior month, but a surge in permits for future construction to a near eight-year high suggested the pullback was temporary and pointed to underlying strength in housing.
Groundbreaking dropped 11.1 percent to a seasonally adjusted annual pace of 1.04 million units, the Commerce Department said on Tuesday. That partially reversed April’s large gain. April starts were revised up to a 1.17 million-unit rate, the highest since November 2007.
Economists polled by Reuters had forecast housing starts falling to a 1.10 million-unit pace last month after a previously reported 1.14 million-unit rate.
