February housing starts down at year's low

Washington

US housing starts plunged to their lowest level in a year in February likely as harsh weather kept building crews at home, in the latest indication that the economy hit a soft patch in the first quarter. Groundbreaking tumbled 17 per cent to a seasonally adjusted annual pace of 897,000 units, the lowest level since January 2014, the Commerce Department said on Tuesday.

January's starts were revised up to a 1.08 million unit pace from the previously reported 1.07 million unit rate. February's decline was likely a temporary setback for housing as permits for future construction rose 3 per cent last month.