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Groundbreaking decreased 8.8 percent to a seasonally adjusted
annual pace of 1.09 million units, the lowest level since
October, the Commerce Department said on Tuesday.
February's starts were revised up to a 1.19 million-unit rate
from the previously reported 1.18 million-unit pace.
Economists polled by Reuters had forecast housing starts
slipping to a 1.17 million-unit pace last month. Last month's
drop in groundbreaking pointed to a moderation in housing market
activity and mirrors other data such as business spending, trade
and retail sales that have suggested economic growth stalled in
the first quarter.
The economy has been slammed by a strong dollar and weak global
demand, which have weighed on exports. Lower oil prices are also
a drag as they have undercut profits of energy firms, causing a
sharp decline in spending on capital projects.
Still, housing market fundamentals remain strong against the
backdrop of a buoyant labor market, which is increasing
employment opportunities for young adults, and in turn boosting
household formation.
Last month, groundbreaking on single-family housing projects,
the largest segment of the market, tumbled 9.2 percent to a
764,000-unit pace, the lowest since October.
Single-family starts fell in all four regions last month,
sliding 4.9 percent in the South, where most home building takes
place. Housing starts for the volatile multi-family segment
declined 7.9 percent to a 325,000-unit pace. Building permits
dropped 7.7 percent to a 1.09 million-unit rate last month, the
lowest level since March last year. Permits for the construction
of single-family homes decreased 1.2 percent in March, while
multi-family building permits plunged 18.6 percent.
(Reporting by Lucia Mutikani; Editing by Andrea Ricci; ((Lucia.Mutikani@thomsonreuters.com;
1 202 898 8315; Reuters; Messaging:
lucia.mutikani.thomsonreuters.com@reuters.net)))
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