Home Construction In US Rebounds 4.3%

U.S. homebuilding increased less than expected in May, but a strong rebound in permits for future home construction suggested the housing market was starting to emerge from the COVID-19 crisis along with the broader economy. Other data showed applications for loans to buy a home surged to a near 11-1/2-year high last week. The reports followed on the heels of data showing a record surge in retail sales in May. Employers hired a historic 2.5 million workers last month. Activity, however, remains well below pre-COVID-19 levels and economists warn it could take even a decade for the economy to fully recover from the global pandemic. Federal Reserve Chair Jerome Powell also warned of the long road to recovery. The economy slipped into recession in February. Housing starts rose 4.3% to a seasonally adjusted annual rate of 974,000 units last month, the Commerce Department said. The increase recouped only a fraction of the more than 40% cumulative decline in homebuilding in March and April. Starts dropped 23.2% on a year-on-year basis in May.