WASHINGTON: New construction of homes in the United States was stuck in the doldrums for a second straight month in March, according to government data released Thursday.
Housing starts rose 2.0 percent in March to an annual rate of 926,00 units, but were down 2.5 percent from March 2014, the Commerce Department said.
Starts increased less than expected as severe winter weather in February eased in March. On average, analysts expected a March rate of 1,045 units.
Starts had trended above 1,000 between September and January, but bad winter weather in February was blamed for the slowdown. The department upwardly revised February starts to a pace of 908,000 from the previous estimate of 897,000.
The March report was mixed. Starts in single-family homes, which account for two-thirds of the market, rose 4.4 percent to a 618,000 annual rate. Multifamily unit starts fell 7.1 percent to a pace of 287,000.
Building permits, an indicator of future construction activity, dropped 5.7 percent in March to an annual rate of 1,039,000.
"Given yesterday's fairly positive homebuilder survey, we suspect the disappointment reflects lingering weather effects rather than a weakening in the trend," said Jim O'Sullivan, chief US economist at High Frequency Economics.
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