Page 7 - ATODAY

U.S. NEWS A7
Thursday 17 March 2016

US Financial Front:

American new home construction jumps in February

Applications for building The decline in building per- Paribas, said the slump in
permits, a gauge of future mits, unless reversed, could building permit applica-
activity, fell 3.1 percent to signal future trouble in an tions should only translate
an annual rate of 1.17 mil- industry that was a bright into a brief construction
lion units after a flat read- spot for the economy last slowdown given the solid
ing in January and a drop year. But Bricklin Dwyer, fundamentals supporting
in December. an economist with BNP housing.

A “Sold” sign sits in front of a house under the final stages of
construction in Plano, Texas. On Wednesday, March 16, 2016,
the Commerce Department reported on U.S. home construction
in February.

(AP Photo/LM Otero)

AP Economics Writer last month to a seasonally
WASHINGTON (AP) — Con- adjusted annual rate of
struction of new homes 1.18 million units, the Com-
rose in February to the merce Department report-
highest level in five months, ed Wednesday. Construc-
but applications for new tion had fallen in January
construction were weak in December, declines that
for a third month. Hous- had been blamed in part
ing starts rose 5.2 percent on winter weather.

US builder sentiment

holding steady

AP Business Writer had been in the low 60s for
U.S. homebuilders remain eight months until February.
optimistic that the housing Builders’ view of cur-
market will improve, but rent sales conditions held
their expectations for sales steady, while a measure of
over the next six months traffic by prospective buy-
have dimmed just as the ers increased. But builders’
spring home-selling season outlook for sales over the
gets under way. The Na- next six months declined
tional Association of Home to the lowest level in 12
Builders/Wells Fargo builder months. The latest readings
sentiment index released come as the annual spring
Tuesday held steady at 58 buying season ramps up.
this month. Typically, the season sets
Readings above 50 indi- the pattern for residential
cate more builders view hiring and construction
sales conditions as good for much of the rest of the
rather than poor. The index year.