FXstreet.com (Barcelona) - Activity in the US construction sector does not see the end of the tunnel and housing starts as well as building permits have posted declines in May from already low levels, according to the US Commerce Department.
Starts of new houses have declined 3.3% on the month in May to a seasonally adjusted rate of 975,000 units, from the annual rate of 1,008 million posted in April, revised down from the 1,032 M annual rate previously estimated. April's increase, thus, has been revised down to 2.0% from the 8.2% published initially.
The nearest future for construction activity does not paint a much brighter outlook, building permits have declined 1.3% to a 969,000 annual rate from April's revised 982,000.
Housing starts have declined 32.1% from the 1,436,000 annual rate posted in May 2007, while building permits have fallen 36.3 percent below the revised May 2007 estimate of 1,522,000.