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In some welcome news on Tuesday, the Commerce Department reported a surge in new U.S. housing starts and permits for the month of May. For three straight months new housing has increased steadily, indicating that the housing market could turn around if the trend continues.

The best news from the Commerce Department could be the increase in single family starts, which had its biggest monthly increase since January of 2006, just about 40 months ago. This news obviously shows that families are finally starting to spend wisely and without fear once more, which is exactly what’s needed to turn a recession around.

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