Housing Starts Rise in May, Permits Surge

Washington, DC, June 16, 2011 -- Housing starts recovered partially in May from a steep drop in April, the Commerce Department estimated Thursday.

Starts rose 3.5% in May to a seasonally adjusted 560,000 annualized units, stronger than the 550,000 pace expected by economists.

Starts fell a revised 8.8% in April to 541,000 units compared with the initial estimate of a 10.6% fall to 523,000 units.

Building permits rose 8.7% in May to a seasonally adjusted annual rate of 612,000. This is the highest level of permits this year.