WASHINGTON (AP) – Construction of new homes rose in February to the highest level in five months, but applications for new construction were weak for a third month.
Housing starts rose 5.2 percent last month to a seasonally adjusted annual rate of 1.18 million units, the Commerce Department reported Wednesday. Construction had fallen in January in December, declines that had been blamed in part on winter weather.
Applications for building permits, a gauge of future activity, fell 3.1 percent to an annual rate of 1.17 million units after a flat reading in January and a drop in December.
The decline in building permits, unless reversed, could signal future trouble in an industry that was a bright spot for the economy last year.
For February, construction of single-family homes rose 7.2 percent to an annual rate of 822,000 units. Construction in the smaller apartment sector edged up a slight 0.8 percent to a rate of 356,000 units.