Housing starts jumped 22% in February as work began on 583,000 homes and apartments.
Work began on 583,000 homes at an annual rate, a 22 percent increase from January that was propelled by a surge in condominiums, apartments and townhouses, Commerce Department figures in Washington showed today. A separate report showed gains in producer prices slowed, underscoring a lack of inflationary pressures with the economy in a recession.
"It's a bit too early to get too excited, but we are nearing the bottom in housing," said Scott Anderson, senior economist at Wells Fargo & Co. in Minneapolis, who had forecast an increase in starts.
Housing is still down nearly 50% from one year ago and the increase is only expected to be temporary but it added a bit of optimism to the housing industry, which has been hit very hard during the recession.
