Rolling Expansion?

What happens after a rolling recession? Perhaps a rolling expansion as the economic sectors that fell into a recession recover. Today's housing starts report for May was certainly strong. Housing starts jumped 21.6% to 1.63 million units (saar) last month from April's 1.34 million (chart). It was the largest percentage gain since October 2016.

A survey on Monday showed the National Association of Home Builders/Wells Fargo Housing Market index in June rose above the midpoint mark of 50 for the first time since July 2022 as a shortage of existing homes is boosting demand for new ones. The index has rebounded by 77% since December.