Home building south of the border rebounded more than expected in June after declining for three straight months, but construction activity remains constrained by rising lumber prices and labour and land shortages.
Information released Wednesday by the U.S. Commerce Department revealed that housing starts jumped 8.3% to a seasonally adjusted annual rate of 1.22 million units, the highest level since February, as both single-family and multi-family construction increased
The department added May's sales pace was revised up to 1.12 million units from the previously reported 1.09 million units.
Economists had forecast groundbreaking activity rising to a rate of 1.16 million units last month. Home building rose 2.1% on a year-on-year basis.
Even so, a survey on Tuesday showed confidence among home builders hit an eight-month low in July amid complaints about high lumber prices and shortages of building lots and labour. Lumber prices surged after the government in April imposed anti-subsidy duties on imports of Canadian softwood lumber.
