WASHINGTON:Construction begun on new housing fell slightly in January, driven by sharp declines in building in the US West and Midwest, the Commerce Department reported Thursday.
The slowdown last month was magnified by an upward revision to December’s already strong construction pace.
But a second consecutive increase in permits for new home building indicates construction is poised to rebound.
Housing starts fell 2.6 percent in January to an annual rate of 1.25 million units, with construction in the western United States plunging 41.3 percent and in the Midwest falling 17.9 percent.
Analysts were expecting a bigger slowdown to 1.22 million units.
Compared to January 2016, however, the upward trend persisted, with building up 10.5 percent.
Construction started on single-family homes rose nearly two percent in the month, while buildings with multiple units dropped eight percent, continuing the trend of month-to-month swings.
But the trend has been towards construction of more apartment buildings, as younger people hold off on buying property, and construction is up 26 percent from a year ago, while building of single-family homes is up just six percent.
Building permits posted their second consecutive month of gains, rising 4.6 percent in January on the back of a 23.5 percent rise in authorizations for buildings with five or more units.
Source: AFP