US housing construction dips 5.9% in February

KUALA LUMPUR: Housing construction fell in February as blizzards depressed activity in the Northeast and South of the US. The decline highlighted problems facing builders as they struggle to emerge from the worst housing slump in years.

The Commerce Department said on March 16 that construction of new homes/apartments fell 5.9% in February to a seasonally adjusted annual rate of 575,000 units, slightly higher than the 570,000 that analysts were expecting.

January activity was revised up to 622,000 units, the strongest showing in 14 months. Economists characterised the February dip as weather-related although they said any housing rebound this year will likely be modest at best.