U.S. housing starts rose more than expected in June as construction activity increased broadly, but a downward revision to the prior month's data pointed to a housing sector treading water in the second quarter.
Figures released Tuesday morning by the U.S. Commerce Department revealed work on new houses surged 4.8% to a seasonally adjusted annual pace of 1.19 million units. May's starts were revised down to a 1.14 million-unit pace from the previously reported 1.16 million-unit pace.
Economists had forecast housing starts rising to a 1.17-million-unit pace last month.
Housing starts in the second quarter were a bit higher than the average for the first three months of the year, suggesting that residential construction was probably a small boost to gross domestic product in the second quarter.
The housing market is being supported by a strengthening labour market and demand for rental accommodation, but home building is being constrained by labour and land shortages.
Related Stories
