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(CEP News) - Markets will receive additional housing data on Thursday with the release of June housing starts and building permits. Housing starts are forecasted to come in at 960,000 units, down from May's 969,000 starts, while building permits are expected to come in at 970,000, down slightly from May's revised number of 978,000 units.
Economists at Global Insight expect the slide in housing starts to continue. "Our view is that housing starts will drop more than 15% from current levels, before turning around late this year. For June, we project that housing starts will drop to .952 million units and permits to .939 million units. Although housing starts are still falling, they are dropping at a slower rate than in recent months. This is why construction spending on single-family homes dropped 3.4% in May, the second-smallest drop in 10 months," they wrote. Economists at RDQ predict housing starts will pull back by 1% in June as the sector continues to weaken. "Floods in the Midwest may have also hampered construction activity. We see building permits falling to 975,000 units in June from 978,000 units in May," RDQ economists wrote. Initial jobless claims are expected to decline to 349k from the previous week's tally of 380k as we head into the summer season and production slows on car assembly lines. Economists at RDQ believe the loss in jobless claims in the first week of July may have been due to seasonal adjustment issues and the outlook is slightly more optimistic this week. "We look for initial claims to have rebounded sharply in the week of July 12th, to 385,000 from 346,000 in the prior week," they wrote. Markets will also be interested in the Philly Fed survey, which is expected to fall to a level of -15 following May's reading of -17.1. 8:30 CA International Securities Transactions May Exp: C$3.500B Prior: C$9.751B 8:30 CA Travel Between Canada and Other Countries 8:30 CA Canadian Economic Observer July 8:30 US Housing Starts June Exp: +960K Prior: +975K 8:30 US Initial Jobless Claims W/E July 12 Exp: +380K Prior: +346K 8:30 US Continuing Claims W/E July 5 Exp: +3180K Prior: +3202K 8:30 US Building Permits June Exp: +965K Prior: +969K Revised +978K 10:00 US Philadelphia Fed. July Exp: -15 Prior: -17.1 10:30 CA Bank of Canada Monetary Policy Report 10:30 CA Bank of Canada to Sell $2.3 Billion in Cash Management Bills 10:30 US EIA Natural Gas Storage Change Exp: +88 Bcf Prior: +90 Bcf By Steve Stecyk,
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, edited by Nancy Girgis,
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