US DATA: May housing starts -4.8% to 708k, below expectations, but
permits +7.9% to 780k, suggesting a pickup ahead. Starts are in a seesaw
but remain +28.5% YOY. The May starts drop reflects continued erratic
moves in 5+ units at -24.2%; these were elevated from Feb-April. Single
starts continue to improve and posted +3.2%. Singles are at their best
levels since early 2010. So underlying data are better than headlines.
By region, starts were -20.3% in NE, -13.3% in MW, -6.1% in South, and
+14.4% in West. 1-fam hsg permits continue rising; one exception is
they were steady in NE. May hsg completions were 598k and units under
construction 467k. Overall these data show continued hsg recovery.