U.S. Housing Starts Rise To Five-Month High In July

Source: Reuters

U.S. housing starts unexpectedly rose in July as building activity increased across the board, supporting the view that investment in residential construction will rebound after slumping in the second quarter.

Groundbreaking increased 2.1 percent to a seasonally adjusted annual pace of 1.2 million units, the highest level since February, the Commerce Department said on Tuesday. June's starts were largely unchanged at a 1.19 million-unit rate.

Permits for future construction dipped 0.1 percent to a 1.15 million-unit rate last month. Economists polled by Reuters had forecast housing starts slipping to a 1.18 million-unit pace last month and building permits rising to a 1.16 million-unit rate.

Investment in residential construction contracted in the second quarter for the first time in more than two years.

Read more: http://www.reuters.com/article/us-usa-housing-idUSKCN10R18Y