US residential construction sector faces significant downturn
Housing development in the USA took a hit in May. The initiation of fresh projects dropped by 5.5% to around 1.28 billion residential units, as per the US Commerce Department's announcement on Thursday.
Industry specialists, polled by Reuters, anticipated a figure of 1.37 billion units. Previously, in April, there was a hike of 4.1% reported, which was revised upwards to 1.352 billion units.
The count of approvals, which serves as an early gauge for future construction, slipped by 3.8% to an annualized 1.39 billion in May. Economists had forecast 1.45 billion units instead.
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The downturn in the USA's residential construction business affected various sectors in May. Despite anticipation of higher figures, the initiation of new residential construction projects in the USA decreased in May, affecting the residential construction business within the USA.
