New Home Construction Logs Unexpected Gain!

Washington(AP) – March 17, 2009 – The number of new housing projects that builders broke ground on in February rose sharply, defying economists' forecasts for yet another drop in activity.The Commerce Department reported Tuesday that construction of new homes and apartments jumped 22.2 percent from January to a seasonally adjusted annual rate of 583,000 units. Economists were expecting construction to drop to a pace of around 450,000 units.Construction activity fell to a pace of 477,000 units in January, according to revised figures. That was a little higher than first reported but still marked a record low.Applications for building permits, considered a reliable sign of future activity, also rose in February by 3 percent to an annual rate of 547,000. Economists were expecting permits to fall to a pace of 500,000 units.Even with February's rare burst of activity, housing construction is down a whopping 47.3 percent from a year ago.