Residential construction activity in the United States rose unexpectedly in January, according to a report released Thursday by the Commerce Department.
The report showed housing starts climbed 7.2% to a seasonally adjusted annual rate of 1.487 million in January, following a revised 4.8% increase to 1.387 million units in December.
Economists had forecast a decline in new construction. Consensus estimates called for housing starts to drop 3.9% to an annual rate of 1.350 million from the previously reported 1.404 million in December.
At the same time, the report indicated a sharp pullback in building permits. Permits fell 5.4% in January to an annual rate of 1.376 million after rising 4.8% to a revised 1.455 million in the previous month.
Building permits, which are viewed as a leading indicator of future housing activity, were expected to decrease by 5.2% to a rate of 1.410 million from the initially reported 1.448 million in December.