Housing starts in the U.S. unexpectedly snapped the longest streak of declines in 18 years in February, adding to signs that the pace of the economy’s decline may be easing.
Work began on 583,000 homes at an annual rate, a 22 percent rise from January, the Commerce Department said in Washington today. The jump was influenced by warmer weather and an 82 percent surge in starts on condominiums, apartments and townhouses that’s unlikely to be sustained, analysts said.
While the glut of unsold properties on the market means the housing industry’s recession will probably continue for some time, economists said today’s report indicates the worst of the contraction may have passed. Retail sales figures for February last week also indicated a slower rate of decline.
