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US springs economic surprise

Jaimie Kanwar

The latest economic figures from the US are 'surprising', according to one newspaper...

An unexpected rise in the number of new housebuilding projects in the US last month capped a week of surprising economic results from the world's largest economy, reports The Independent.

• The number of housing starts in April jumped 8.2 per cent.
  
  
• There was an increase in the number of building permits granted, suggesting construction firms are more optimistic that they will be able to sell new homes in the future.
  
  
• Inflation data remained more subdued than forecast.
  
  
• Consumer spending topped expectations, raising hopes that the US economy may prove more robust than feared.

The Independent proceeded to pour cold water on any positivity flowing from these results, arguing: “Inflation may have been subdued because of a seasonal adjustment to petrol prices, which may tick up again in coming months, they said.

"Consumer spending beat expectations only if you strip out car sales, which are an important component of the economy and the housing starts increase could be down to volatile apartment building projects”.