Starts and Permits Disappoint

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Housing starts rose a measly 1.6% to 1.36M, but it was single family permits that really disappointed in April, coming in at 1.41M versus 1.45M expected and 1.48 prior. The slump is a reflection of falling builder sentiment due to higher Trump tariffs, a shrinking labor supply amide his crackdown on immigration, and persistently high mortgage interest rates.

Another economic data point which is usually ignored came in much higher than expected. Import prices rose 0.4% versus 0.1% for the month. We should see an even higher print next month when the front loading effect falls away.

Futures have come down off their earlier highs, but are still up slightly ahead of the open.

Keep an eye on University of Michigan Consumer Sentiment due out at 10am. It is nearing all-time lows, and is one of the few important economic data points that can’t be influenced by politicians.

A spate of studies has shown that the average American family is having a very tough time with its finances.