UPDATE 2-Canadian May housing starts suggest boost for economy

Mon Jun 10, 2013 10:35am EDT
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* Groundbreaking for homes rose to 200,178 units annualized in May

* Economists forecast starts at 178,100 starts

* Gains led by condo building in cities

* Latest economic report to suggest firmer Q2 economy

By Jeffrey Hodgson

TORONTO, June 10 (Reuters) - Canadian housing starts jumped much more than expected in May from April, the Canada Mortgage and Housing Corp said on Monday, in the latest sign that the broader economy is gaining momentum in the second quarter.

The seasonally adjusted annualized rate of housing starts was 200,178 units in May, an increase from 175,922 in April. The April figure was revised upward.

Analysts polled by Reuters had expected 178,100 starts in May.

The housing starts data was the most recent report to suggest Canadian economic growth is picking up after struggling in the second half of 2012. A separate report on Friday showed the economy added 95,000 jobs in May, the second-biggest gain in 37 years.   Continued...