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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 Housing Starts easily beat expectations at 1631k vs 1400k expected, more than offsetting the -61k revision to prior at 1340k; meanwhile Permits beat handily as well (1491k vs 1425k expected, +1k revision to prior at 1417k).
- The report adds to Monday's NAHB sentiment (itself a leading indicator of permits, starts, and construction) to suggest that the US housing market has stabilized.
- These are volatile series which suggest caution over a single month's data is advised, but the overarching story is: while multi-unit activity looks like it is peaking, with rising interest rates offsetting investor interest in a sector seeing high rental yields, the pullback in single-family activity of recent months to pandemic lows looks increasingly like it is reversing.
- Looking at starts: the 1631k total was made up of 997k single family (+156k from April) and 634k multi family (+135k from April). Respectively those were were the highest in 11 months and - for multi-units, since the mid-1980s (so perhaps the peak isn't quite in yet).
- For permits: the 1,491k total was 897k single family (+41k M/M and a 10-month high) and 594k multifamily (+33k M/M, just a 2-month high).
- The number of units under construction hit a 4-month high of 1689k, up 12k from April - this was led by multi-family which hit an all-time high 994k units under construction. Overall construction remains around the highest levels since the 1970s.
Source: Census Burreau, 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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