CONSTRUCTION of new US homes rebounded modestly in May from a plunge the prior month, official data released on Tuesday showed, fresh evidence that the housing market continues to recover.
Housing starts rose 6.8 per cent to an annual rate of 914,000, after plunging 14.8 per cent in April, the Commerce Department reported.
Compared with a year ago, housing starts were up 28.6 per cent.
But new building permits, a sign of potential future construction activity, fell 3.1 per cent to a rate of 974,000. Permits were up 20.8 per cent from May 2012.
Last month's numbers came in well below analysts' forecasts of 950,000 housing starts and 983,000 building permits.
New construction on single-family homes, which account for the bulk of the housing market, slipped 0.3 per cent to a rate of 599,000. Starts on multiple-unit residential buildings jumped 24.9 per cent.
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