U.S. housing starts rose more than expected in April as builders ramped up the construction of single and multi-family homes, supporting views that the economy was regaining steam early in the second quarter.
Groundbreaking increased 6.6 percent to a seasonally adjusted annual pace of 1.17 million units, the Commerce Department said on Tuesday. March’s starts were revised up slightly to a 1.10 million-unit rate from the previously reported 1.09 million-unit pace.
Economists polled by Reuters had forecast housing starts rising to a 1.13 million-unit pace last month. The government revised seasonally adjusted housing starts data from January 2014 through March this year.
Housing is being supported by a buoyant labor market, which is increasing employment opportunities for young adults, and in turn bolstering household formation. Read more