A report published Wednesday by the U.S. Department of Commerce revealed a strong rebound in U.S. residential construction activity in March, even as forward-looking indicators weakened significantly.
Housing starts jumped 10.8% to a seasonally adjusted annual rate of 1.502 million units, up from 1.356 million in February. This figure came in well above economists’ expectations of 1.400 million.
In contrast, building permits — often seen as a gauge of future construction activity — declined sharply. Permits dropped 10.8% to an annual rate of 1.372 million, down from 1.538 million the previous month.
The reading also missed forecasts, as analysts had anticipated permits to reach an annual rate of 1.390 million.