Privately-owned housing starts in May were at a seasonally adjusted annual rate of 1,036,000, slightly below expectations on rate of 1,100,000. This is 11.1% below the revised April estimate of 1,165,000, but is 5.1% above the May 2014 rate of 986,000. Single-family housing starts in May were at a rate of 680,000; this is 5.4% below the revised April figure of 719,000. The May rate for units in buildings with five units or more was 349,000.

Wednesday's US session was marked by Fed interest rate decision and the following statement. As it was largely expected Fed left its interest rates unchanged at <0.25%. “Economic activity has been expanding moderately,” the Federal Open Market Committee said in a statement Wednesday in Washington. “The pace of job gains picked up,” it said, and “underutilization of labor resources diminished somewhat” since their last meeting in April. A rebound in job growth is giving Fed officials reason to look beyond a first-quarter economic slowdown as they consider when to tighten policy. At the same time, inflation remains below their target, and central bankers say the timing of a rate increase depends on how economic data unfold.

“The committee expects inflation to rise gradually toward 2 percent over the medium term as the labor market improves further and the transitory effects of earlier declines in energy and import prices dissipate,” according to the statement. The Fed repeated it will raise rates when it sees further labor-market improvement and is “reasonably confident” inflation will move back to its 2 percent goal over the medium term.

Thursday brought CPI, Unemployment Claims, Current Account and Philly Fed Manufacturing Index figures. US CPI increased 0.4% in May on a seasonally adjusted basis, slightly below anticipated incline by 0.5%. Over the last 12 months, the all items index was unchanged before seasonal adjustment. The gasoline index increased sharply in May, rising 10.4% and accounting for most of the seasonally adjusted all items increase. The index for all items less food and energy rose 0.1% in May, its smallest increase since December and below expectations on 0.2% increase. 

In the week ending June 13, the advance figure for seasonally adjusted initial claims was 267,000, a decrease of 12,000 from the previous week's unrevised level of 279,000. Analysts were forecasting smaller decrease to 278,000. The 4-week moving average was 276,750, a decrease of 2,000 from the previous week's unrevised average of 278,750. 

Separate report, on Current Account showed $113 billion deficit, beating predictions on $116 billion deficit. The increase in the current-account deficit was largely accounted for by a decrease in the surplus on primary income. In addition, the deficit on goods increased. These changes were partly offset by an increase in the surplus on services and a decrease in the deficit on secondary income.

Philly Fed Manufacturing Index increased from 6.7 in May to 15.2 this month. This is the highest reading for the index since December. The demand for manufactured goods, as measured by the survey’s current new orders index, picked up this month. The new orders index increased 11 points to its highest reading since November. The current shipments index increased 13 points, also the highest reading since November.

This week markets will be looking at:

Existing Home Sales (Monday 16:00)

Durable Goods Orders (Tuesday 14:30)

Flash Manufacturing PMI (Tuesday 15:45)

New Home Sales (Tuesday 16:00)

Final GDP (Wednesday 10:00)

Unemployment Claims (Thursday 8:00)