U.S. residential construction activity slowed in April, although the decline was significantly smaller than economists had anticipated, according to data released Thursday by the Commerce Department.
Housing starts dropped 2.8% to a seasonally adjusted annual rate of 1.465 million units in April, following a revised 12% surge to 1.507 million units in March.
Economists had expected a steeper decline of 6.3%, with forecasts pointing to an annualized pace of 1.410 million units, compared with the previously reported 1.502 million rate for March.
Meanwhile, building permits — viewed as a key indicator of future housing demand — rebounded strongly during the month.
The Commerce Department said permits jumped 5.8% to an annual rate of 1.442 million in April after plunging 11.5% to a downwardly revised 1.363 million in March.
Analysts had expected permits to rise just 0.6% to an annualized rate of 1.380 million from the originally reported March level of 1.372 million.