"The housing market continues to recover at a very gradual rate"
- Sal Guatieri, a senior economist at BMO Capital Markets
U.S. housing starts declined slightly in February, but the biggest increase in building permits in more than three years shows the industry is recovering. Housing starts fell 1.1% to an annual rate of 698,000 last month. Permits to begin new construction rose 5.1% in February to an annual rate of 717,000.
"The housing market continues to recover at a very gradual rate," said Sal Guatieri, a senior economist at BMO Capital Markets in Toronto.
"The increase in permits likely flags further strength in the months ahead."
"The level of house building clearly remains depressed by historical standards, but at least is now beginning to make modest positive contributions to U.S. growth," said economist Andrew Grantham of CIBC World Markets.
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