US DATA: March housing starts -5.8% to 654k (below expectations)
but permits +4.5% to 747k (showing future strength). The drop in starts
was centered in 5+ units at -19.8% in a reversal of the Feb surge (this
sector has seesawed since fall 2011, and mild winter weather might have
moved multi starts even earlier than normal); singles were steady at
just -0.2%. So the underlying data look better than the headline drop.
By region, starts were +32.8% in NE, +1.0% in MW, -15.9% in South
(mainly due to severe seasonal adj in the multis), flat in West. Any
lingering permits weakness was centered in dips in the single-families
in the NE and South. March hsg completions were 600k and units under
construction totaled 447k, a 6.4% yoy gain.