US housing starts fell in February, but permits for future construction jumped to their highest level since October 2008, according to a government report on Tuesday that showed steady improvement in the housing market.
The commerce department said housing starts slipped 1.1 per cent to a seasonally adjusted annual rate of 698,000 units. January’s starts were revised up to a 706,000-unit pace from a previously reported 699,000 unit rate.
Economists polled by Reuters had forecast housing starts little changed at a 700,000-unit rate. Compared to February last year, residential construction was up 34.7 per cent, the biggest year-on-year rise since April 2010. New building permits surged 5.1 per cent to a 717,000-unit pace last month, far exceeding economists’ expectations for an advance to a 690,000-unit pace from January’s 682,000-unit rate.