Construction of new US homes rebounded in February after a big decline in the previous month.
The Commerce Department reported that construction of new homes and apartments rose by 9 per cent in February to a seasonally adjusted annual rate of 1.525 million units.
That represented a better-than-expected rebound after construction activity had plunged by 14.3 per cent in January to the slowest pace in more than nine years.
But builders' applications for new permits, considered a more reliable gauge of future activity, continued falling in February, dropping by 2.5 per cent to an annual rate of 1.532 million units.
That marked the 12th decline in the past 13 months in building permits and underscored the construction industry's steep slump.
The 9 per cent rebound in housing in February had been expected given that construction had fallen so much in January, a month when a return to more normal winter weather had pushed construction activity lower after an unusually warm December.
After enjoying five boom years of record sales of new and existing homes, the housing industry has been mired for the past year in a steep slump as demand has fallen sharply and home prices, which had been surging, have stagnated.