by Michelle Jamrisko | Bloomberg
Confidence among U.S. homebuilders rebounded in June to a nine-month high as warmer weather and a brighter economic outlook drew prospective buyers back to the market.
The National Association of Home Builders/Wells Fargo builder sentiment gauge rose to 59 this month, the strongest since September and exceeding all projections in a Bloomberg survey, from 54 in May, figures from the Washington-based group showed Monday. The median survey forecast called for 56.
Activity in the residential real estate market has shown a slow rebound as the busier selling season takes hold, which could help the economy overcome weakness in manufacturing. Employment gains and rising wages are giving would-be home buyers reason to take the plunge.
The data show “a growing optimism among builders that housing will continue to strengthen in the months ahead,” David Crowe, NAHB chief economist, said in a statement. “At the same time, builders remain sensitive to consumers’ ability to buy a new home.”
Estimates in a Bloomberg survey of 48 economists ranged from 54 to 58. Readings greater than 50 mean more respondents report good market conditions.
Another report Monday showed factory production unexpectedly declined in May as the slump in energy output deepened. The 0.2 percent decrease at manufacturers followed a 0.1 percent increase in April, according to figures from the Federal Reserve in Washington. Total industrial production, which adds mines and utilities, also dropped 0.2 percent.
