FOREX TradingCharts.com

Financial News: U.S. Housing Starts Drop 0.9% In June, Building

U.S. Housing Starts Drop 0.9% In June, Building Permits Plunge To Two-Year Low

07/17/2019 - 09:32:00 (RTTNews)

(RTTNews) - Reflecting a steep drop in multi-family housing starts, the Commerce Department released a report on Wednesday showing a bigger than expected decrease in new residential construction in the month of June.

The Commerce Department said housing starts slid by 0.9 percent to an annual rate of 1.253 million in June after slipping by 0.4 percent to a revised rate of 1.265 million in May.

Economists had expected housing starts to fall by 0.6 percent to a rate of 1.261 million from the 1.269 million originally reported for the previous month.

The bigger than expected decrease came as multi-family starts nosedived by 9.2 to a rate of 406,000, more than offsetting a 3.5 percent jump in single-family starts to a rate of 847,000.

Housing starts plummeted by 9.2 percent in the South and 4.9 percent in the West but soared by 31.3 percent and 27.1 percent in the Northeast and Midwest, respectively.

The report also unexpectedly showed a substantial pullback in building permits, an indicator of future housing demand.

Building permits plunged by 6.1 percent to an annual rate of 1.220 million in June after climbing by 0.7 percent to a revised rate of 1.299 million in May.

Economists had expected building permits to rise by 0.5 percent to a rate of 1.300 million from the 1.294 million originally reported for the previous month.

With the much steeper than expected drop, building permits fell to their lowest level since hitting a rate of 1.201 million in May of 2017.

While single-family permits crept up by 0.4 percent to a rate of 813,000, multi-family permits plummeted by 16.8 percent to a rate of 407,000.

Compared to the same month a year ago, housing starts in June were up by 6.2 percent but building permits were down by 6.6 percent.

"The [housing] sector has been facing significant headwinds," said ING Chief International Economist James Knightley. "Material costs have been rising and there is the obvious exposure to trade tensions given imports of timber and metal."

"Nonetheless, we remain upbeat on the prospects for U.S. housing," he added. "After all, the consumer is in great shape with employment at record levels, wages rising strongly in real terms and confidence remaining firm."

Knightley noted mortgage rates have plummeted in the wake of the plunge in U.S. Treasury yields, which have come under pressure amid expectations of a near-term interest rate cut by the Federal Reserve.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2019 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Fed Intends To Remain Flexible Regarding Future Interest Rate Cuts (02 hr(s), 13 min(s), 12 sec(s) ago)
(RTTNews) - Citing a lack of clarity about when the risks to the U.S. economy will be resolved, th ...Full Story»

Zambia Holds Rate Steady On High Inflation, Weaker Growth Outlook (06 hr(s), 29 min(s), 12 sec(s) ago)
(RTTNews) - Zambia's central bank left its key interest rate unchanged on Wednesday, after rai ...Full Story»

Spain Exports Rise In June (06 hr(s), 43 min(s), 12 sec(s) ago)
(RTTNews) - Spanish merchandise exports rose 0.9 percent year-on-year in June, mainly due to incre ...Full Story»

U.S. Existing Home Sales Rebound More Than Expected In July (06 hr(s), 43 min(s), 12 sec(s) ago)
(RTTNews) - Existing home sales in the U.S. showed a notable rebound in the month of July, accordi ...Full Story»

Continued Monitoring Of Financial Stability Risks Needed: Thailand CB Minutes (07 hr(s), 26 min(s), 12 sec(s) ago)
(RTTNews) - Risks to financial stability such as high household debt, warrants continued monitorin ...Full Story»

Belgium Consumer Confidence Lowest Since November 2016 (07 hr(s), 49 min(s), 12 sec(s) ago)
(RTTNews) - Belgium's consumer confidence dropped sharply in August after a modest improvement ...Full Story»

UK Budget Balance Posts Small Surplus In July (09 hr(s), 18 min(s), 12 sec(s) ago)
(RTTNews) - The UK budget balance showed a small surplus in July, figures from the Office for Nati ...Full Story»

Latvia Producer Price Inflation Slows Further (10 hr(s), 21 min(s), 12 sec(s) ago)
(RTTNews) - Latvia producer price inflation slowed for the seventh straight month in July, figures ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Fed Intends To Remain Flexible Regarding Future Interest Rate Cuts

08/21/2019 - 14:47 PM (RTTNews)
(RTTNews) - Citing a lack of clarity about when the risks to the U.S. economy will be resolved, th ...Full Story>>

Zambia Holds Rate Steady On High Inflation, Weaker Growth Outlook

08/21/2019 - 10:31 AM (RTTNews)
(RTTNews) - Zambia's central bank left its key interest rate unchanged on Wednesday, after rai ...Full Story>>

U.S. Existing Home Sales Rebound More Than Expected In July

08/21/2019 - 10:17 AM (RTTNews)
(RTTNews) - Existing home sales in the U.S. showed a notable rebound in the month of July, accordi ...Full Story>>

Spain Exports Rise In June

08/21/2019 - 10:17 AM (RTTNews)
(RTTNews) - Spanish merchandise exports rose 0.9 percent year-on-year in June, mainly due to incre ...Full Story>>

Continued Monitoring Of Financial Stability Risks Needed: Thailand CB Minutes

08/21/2019 - 09:34 AM (RTTNews)
(RTTNews) - Risks to financial stability such as high household debt, warrants continued monitorin ...Full Story>>
Copyright © 2019. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.