US housing starts and jobless claims rise

US housing starts rose in May, and the number of Americans filing new claims for unemployment benefits also edged higher, according…

US housing starts rose in May, and the number of Americans filing new claims for unemployment benefits also edged higher, according separate reports.

May housing starts increased 0.2 per cent to a 2.009 million unit rate from a downwardly revised 2.005 million unit pace in April, the US Commerce Department said.

Wall Street economists had expected housing starts to increase 0.5 per cent in May to a 2.048 million unit rate after climbing 9.4 per cent the previous month.

A Labor Department report showed jobless claims rose by 1,000 to 333,000 in the week ended June 11th. Wall Street had expected claims to hold steady.

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Permits for future groundbreaking, an indicator of builder confidence, fell 4.6 per cent to a 2.050 million unit pace. The drop was the largest monthly decline since June 2004 and exceeded forecasts for a 2.1 per cent dip.

A Labor Department report showed jobless claims rose slightly. Despite occasional volatility, claims have been holding in a fairly tight range for several months. A steep 19,000 decline in the June 4th week was caused by the Memorial Day holiday along with fewer auto industry layoffs.

The closely watched four-week moving average, viewed as a better gauge of labour market conditions because it smooths weekly volatility, also rose, climbing 2,750 to 335,000.

The number of people still on the jobless rolls after drawing an initial week of benefits rose 58,000 to 2.64 million in the week ended June 4th, the latest week for which data are available.