U.S. February Housing Starts and Permits - Starts rebound but permits edging lower
February housing starts are stronger than expected with a rise of 11.2% to 1501k though this needs to be seen alongside a weather-induced 11.5% decline in January. Permits with a 1.2% decline to 1456k are in line with expectations and show a third straight modest decline.
The state breakdown shows singles up by 11.4% after a fall of 8.6% in January while multiples rose by 10.7% after falling by 18.8% in January. The Northeast and South rebounded from January declines but the Midwest saw a second straight drop while the West saw a second straight gain.
Permits saw singles down by 0.2% for a second straight months and multiples down by 3.1% after a 1.4% January fall. Gains were seen in the Midwest and South but outweighed by declines in the Northeast and West.
The underlying picture looks fairly stable with less sign of weakness than has been seen in some recent housing sector surveys, such as the NAHB’s. The data suggests housing will not have much impact on GDP in Q1.
