US Housing starts drop 13 percent in April

US Housing starts dropped unexpectedly in April to its lowest figure on record. New home construction slid by 13% to 458,000 when forecasts expected at least a figure over 500,000. Single family homes increased by 2.8%, but multifamily homes (apartments, townhouses, etc) dropped to almost a third of the March figures.

Geographically the largest decline was in the Northeast of the US with a 31% drop, in comparison the West rose by 43% but not enough to upset the downward slde in the South and Midwest (21%).

The lack of new homes reaching the market and inventories being reduced is being seen as a positive sign of recovery in the second part of the year by analysts.

Fore more US and International employment data check FXEconostats

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza