In this morning’s data, Housing Starts were 1,569,000 for the month of April, much lower than expected and it is a -9.5% decline from the previous month. However, this follows a strong increase in March of over 19%. Building Permits were 1,760,000 in April, slightly lower than estimates and it is a 0.3% increase from the previous month. Overall, housing starts and to a lesser extent building permits took a breather in April; however, the housing market remains strong given the continuing trends driven by the pandemic. While housing is only a small part of the overall economy at just 5% of Gross Domestic Product (GDP), its effect resonates in other areas of the supply chain and can help drive momentum in jobs and the economy as we work through the re-opening process. In all, bond yields ticked lower following the release of the data and equity futures are higher as we head into the market open.
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