Housing data was mixed in May. Housing Starts, driven by a spike in construction activity, rose 5% M/M to the highest level since 2007. Note, however, that starts make up less than 10% of inventory, and reported data is volatile. May’s data point was accompanied by a 10.2% margin of error. Building permits, a better indicator of construction in the pipeline, dropped 4.6%, with declines across both single family and multi-family units. Existing Homes Sales, the more significant share of the market, were soft, declining a lower-than-expected 0.4%, as headwinds caused by the lack of inventory, high home prices, and rising mortgage rates persisted.

US Current Account—The Q1 US current account deficit, a measure of the US versus international trade balance in goods, services, and unilateral transfers, widened by $8.1B to -$124B, after estimates were sharply revised from -$128.2B in Q4 to -$116.2B in Q1. As a percentage of GDP, however, the deficit rose only slightly to a still moderate 2.5%, versus 2.4% in the prior quarter.

Jobless Claims remain very low and are consistent with a low unemployment rate and strong job growth. Claims decreased by 3K to 218K versus the 221K expectation.

Leading Indicators pointed to solid growth, but the current trend is moderating indicating that economic activity is not likely to meaningfully accelerate.

Tariffs aside, Philly Fed Business Outlook, reported strong manufacturing sector growth despite momentum easing from the near-record levels reported recently.