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U.S. building permits rise in May, but housing starts decline

Published 06/19/2012, 08:36 AM
EUR/USD
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Investing.com - The number of building permits issued in the U.S. rose more-than-expected in May, rising to the highest level since September 2008, official data showed Tuesday.

The report also showed that housing starts declined more-than-expected, painting a mixed picture of the U.S. housing sector.

In a report, the U.S. Census Bureau said the number of building permits issued in May rose 7.9% to a seasonally adjusted 0.780 million, blowing past expectations for a gain of 1% to 0.728 million.

Building permits issued in April totaled 0.723 million.

The report also showed that U.S. housing starts fell by 4.8% in May to a seasonally adjusted 0.708 million from, compared to expectations for a decline to 0.720 million.

Housing starts for April were revised up to 0.744 million units, up from a previously reported 0.717 million units.

The report showed that permits to build single-family homes, which account for three-quarters of the housing market, rose 3.2% to a 516,000-unit pace from 500,000 the previous month.

Following the release of the data, the U.S. dollar remained lower against the euro, with EUR/USD adding 0.31% to trade at 1.2616.

Meanwhile, U.S. stock future indices remained higher after the release of the data. The Dow Jones Industrial Average futures pointed to a gain of 0.25%, S&P 500 futures added 0.25%, while the Nasdaq 100 futures pointed to a 0.4% rise at the open.  

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