U.S. March Housing Starts slide, permits suggest trend is peaking
March housing starts were significantly weaker than expected with a 14.7% decline to 1321k, while permits fell by 4.3% to 1458k. Both declines need to be seen alongside February increases of 12.7% for starts and 2.3% for permits, but there are hints that a lengthy uptrend is now peaking.
Single family data showed starts down by 12.4% after a 14.6% February increase and that can be seen as corrective. However single permits fell by 5.7%, that quite a significant break in trend after thirteen straight gains which does suggest that a lengthy uptrend may be peaking.
The starts decline was exaggerated, if not dramatically, by a 21.7% decline in multiples after a 7.0% February increase but for permits the multiples decline of 1.2% after a 4.9% February increase was quite modest.
