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Economic news
19.03.2024

U.S. housing starts jump more than forecast in February

The monthly report on new residential construction from the Commerce Department showed on Tuesday that housing starts soared by 10.7 per cent m-o-m in February to a seasonally adjusted annual pace of 1.521 million, recording its strongest gain since May 2023 (+17.4 per cent m-o-m), while building permits increased by 1.9 per cent m-o-m to a seasonally adjusted annual rate of 1.518 million, the highest level since August 2023 (1.541 million).

Economists had foreseen housing starts of 1.425 million units for February and building permits of 1.495 million units.

Data for January was revised to show homebuilding growing at a pace of 1.374 million units, instead of rising at a rate of 1.331 million units as reported originally.

According to the report, permits for single-family homes, the largest segment of the market, increased by 1.0 per cent m-o-m in February, while approvals for the multi-family homes segment (includes 2 to 4 and 5 or more housing units) climbed by 4.1 per cent m-o-m.

In the meantime, groundbreaking on single-family homes surged by 11.6 per cent m-o-m in February, while multi-unit starts jumped by 8.6 per cent m-o-m.

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