Housing starts jump more than expected

New residential construction rose at a faster rate than expected in June, according to the Census Bureau.

Housing starts jumped 4.8% at a seasonally adjusted annual rate of 1.189 million, rebounding from a downward-revised 1.7% drop in the prior month.

Economists had forecast that starts rose 0.2% month-on-month in June at a seasonally adjusted annual rate of 1.164 million, according to Bloomberg.

Building permits rose 1.5% at a rate of 1.153 million. Economists had estimated that permits rose 1.2% at a rate of 1.15 million.

The drop in housing starts during May was foretold by a prior decline in permit activity, which leads starts by a month or two.

More to come ...