US housing starts rose more than expected in February

Construction of new homes in the US rose in February more than reversing a decline registered the previous month according to data from the U.S. Department of Commerce.

Housing starts increased 6.8% in February over January, to a seasonally adjusted annual rate of 1.769 million. Economists polled by The Wall Street Journal expected housing starts to rise 3.8% to an annual pace of 1.70 million. Housing starts are 22.3% above the same month a year earlier, when harsh weather across the U.S. hampered construction activity.

Single-family housing starts surged by 5.7% to an annual rate of 1.215 million, while multi-family housing starts soared by 9.3% to a rate of 554,000. Single-family homebuilding rose in the Northeast, Midwest, and South, but fell in the West.