Housing Starts Rise as Inventory Holds Back Sales
|U.S. Review
Housing Starts Rise as Inventory Holds Back Sales
- Housing starts bounced back solidly in May following April’s upwardly-revised 3.1 percent fall, rising 5.0 percent to a 1.35 million-unit pace. Existing home sales fell for the second straight month in May and have fallen 3 percent over the past year, while inventory of homes for sale has fallen over 6 percent.
- The current account deficit widened in Q1 following an upwardly-revised Q4. As a percent of GDP, the deficit has remained between 2 and 3 percent over the past several years, indicating that the economy is growing at about the same pace as the deficit.
Global Review
Canadian Stir-up
- In Canada, a soft print for CPI inflation and indications of deterioration in retail spending take some of the wind out of the sails for rate hikes from the Bank of Canada.
- Meanwhile, the Bank of England kept rates on hold but there is dissention in the ranks of the Monetary Policy Committee. The decision to remain on hold was split (6-3), as a growing number of MPC members indicate a preference to hike rates.
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