Housing Starts in U.S. Surge on Multifamily Unit Demand

Stocks advanced, with the benchmark Standard & Poor’s 500 Index rebounding from its biggest drop since November, as the construction data and corporate earnings topped estimates. The S&P 500 added 1.4 percent, the most since Jan. 2, to 1,574.57 at the close in New York. Gold rebounded from the biggest drop in 33 years as BlackRock Inc. said the selling didn’t reflect fundamentals. Gold futures for June delivery rose 1.9 percent to close at $1,387.40 an ounce on the Comex in New York.

Global Struggles

Other reports today showed the global economy was struggling to regain momentum. German investor confidence declined more than economists forecast in April, and South Korea announced a supplementary budget to support growth as exporters are pressured by a weaker Japanese currency.

The median estimate of 80 economists surveyed by Bloomberg called for U.S. housing starts to climb to a 930,000 annualized pace. Last month’s results exceeded all estimates, which ranged from 885,000 to 985,000. February’s pace was first reported as 917,000.

Work on multifamily homes, such as apartment buildings, jumped 31 percent in March to an annual rate of 417,000, the most since January 2006. While the month-to-month readings tend to be volatile, this portion of the industry has been benefiting from a rebound in household formations as the economy and job market improve.

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