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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
US DATA
May's New Residential Construction report came in weaker than expected, with Housing Starts missing survey expectations by nearly 100k at 1,277k (1,370k expected, 1,352k prior rev), a fall of 5.5% M/M /19.3% Y/Y. Permits likewise disappointed, at 1,386k (1,450k expected, 1,440k prior rev), down 3.8% M/M and 9.5% Y/Y. Completions were down 8.4%M/M but up 1.0% Y/Y.
- The ongoing theme of nascent homebuilding weakness is evident in the report, most notably the pullback in multifamily residential construction activity, which represents around one-third of overall activity.
- Multi-unit permits fell to the lowest since April 2020, and at 437k have fallen substantially since the 813k peak of February 2023. Starts have actually bounced slightly from near-decade lows in March, but at 329k in both April and May, remain below pre-pandemic levels.
- Single family activity, which has help keep overall homebuilding buoyant over the past year, has sagged after an impressive bounce between 1Q 2023 and 1Q 2024: permits/starts fell in May to 949k/982k from 977l/1036k prior, well off the recent highs above 1M.
- Units under construction remain robust (1593k) but have almost certainly peaked, with permits and starts suggesting weaker activity in the quarters ahead.
Source: Census Bureau, MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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