Housing starts bounce back

WASHINGTON: New US housing starts and permits surged in May from record lows, while wholesale prices were muted despite higher gasoline costs, indicating the economy was moving closer to the end of a deep recession.

The Commerce Department said housing starts jumped 17.2 percent, the biggest rise in three months, to an annual rate of 532,000 units. This was as groundbreaking activity for multifamily homes surged 61.7 percent after diving 49.4 percent in April.