**The construction of new homes in the US rose 3.6% between May and June to the highest level in seven months, official figures have shown.**This is the second month in a row that housing starts have risen following a post-war low in April.
Compared with the same month a year ago, however, June starts were down 46%, the Commerce Department said.
The number of single family homes being built jumped 14.4% in June, the biggest jump in over four years.
The number of permits to break ground - considered an indicator of confidence in the building sector - climbed to its highest level since December last year.
Some analysts, however, urged caution in the wake of the stronger-than-expected data.
“This is another piece of data for those seeing the recession ending soon,” said William O’Donnell, head treasury strategist at RBS Securities.
“But housing starts are still within the range of the past six months and the completion rate is still down,” he said.