New residential building activity in the U.S. experienced a stronger-than-anticipated rebound in June, according to data released Friday by the Commerce Department.
Housing starts rose 4.6% to an annualized rate of 1.321 million units last month, following a sharp 9.7% decline to a revised 1.263 million pace in May.
Economists had forecasted a more modest 3.5% increase, expecting starts to reach around 1.3 million units, up from the originally reported 1.256 million in May.
Meanwhile, building permits, which signal future construction demand, inched up 0.2% to an annual rate of 1.397 million in June. This followed a 2.0% drop to a revised 1.394 million in May.
Analysts had predicted a slight decrease of 0.2%, with permits anticipated to slip to about 1.39 million from the initial 1.393 million figure the previous month.
Looking ahead, the University of Michigan is set to release its preliminary consumer sentiment survey for July at 10 a.m. ET, with expectations pointing to a modest increase to 61.5 following June’s rise to 60.7.
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