-David Crowe, NAHB chief economist
Sentiment among US homebuilders dropped for the second consecutive month in February, but remained above the 50-mark threshold for an eight month in a row, indicating that more builders think that market conditions were favourable. The NAHB/Wells Fargo Housing Market index declined to 55 from 57 in January, against analysts' expectations for an increase to 58. Moreover, the Department of Commerce is predicted to report today that the annualized number of all housing starts fell to 1.07 million in January after ending the year just under 1.09 million, close to post-recession peaks. Authorities are expected to have granted 1.08 million building permits last month, up from a revised 1.058 million in December, which would be the second-highest reading of the recovery.
Meanwhile, activity in New York's manufacturing sector fell more than expected in February, as the headline index dropped to 7.78 compared to 9.95 recorded last month and against economists' expectations of 8.50. Any reading above 0 points shows that the sector's activity is generally expanding; below 0, that it is dropping. The distance from 0 indicates an extent of the expansion or decline. The Empire State Manufacturing Survey is a monthly survey of manufacturers in New York State conducted by the Federal Reserve Bank of New York.
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