Residential construction is anticipated to continue its upward trajectory this month after a strong showing in May with housing starts rising by 4.3pc, according to US Census Bureau data.
In addition to adding 974,000 units last month, the US saw housing permits rise by 14.4pc to 1.2mn units. The former nevertheless rose at a slower than expected pace, falling below the long-term household formation rate.
Housing starts for single-family homes only grew by 0.1pc in May to 675,000 units, while multifamily starts shot up by 15pc to 299,000 units. Single-family construction permits also increased by 11.9pc to 745,000, while multifamily permits surged by 18.8pc to 475,000 units.
The rise in housing permits and starts would come as welcome news to the steel businesses that provide material for construction. A rise in construction would mean stronger demand for steel in an industry that has been deeply impacted by COVID-19 related shutdowns.