According to The New York Times, May’s surge in home construction permits suggests “a building up of momentum in housing and the broader economy.”
Data from the Commerce Department says building permits jumped 11.8 percent to a seasonally adjusted annual pace of 1.28 million units, which is the highest since August 2007.
Despite a dip in housing starts in May, April’s robust gain balances it out, maintaining levels consistent with a strengthening housing market.
Ground lost during this past harsh winter has been regained in the housing market, and there are signs activity will accelerate this year as the labor market tightens, spurring stronger wage gains.
Furthermore, economists expect that the housing market will “strengthen enough to take up some of the slack from the struggling manufacturing sector and support economic growth,” the article says.
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