New residential construction in the US reported a significant rise in May, according to data released by the US Commerce Department.
Housing starts increased by 5% to an annual rate of 1.350 million in May, after dropping 3.1% to a revised rate of 1.286 million in April.
US housing starts reached their highest annual rate since hitting 1.354 million in July 2007.
The high rise in housing starts reflected significant increases in both single-family and multi-family starts. Single-family starts wentup by 3.9 percent to a rate of 936,000, while multi-family starts surged up by 7.5 percent to a rate of 414,000.
However, building permits, an indicator of future housing demand, dropped by 4.6 percent to an annual rate of 1.301 million in May after falling by 0.9 percent to a revised rate of 1.364 million in April.
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