US housing starts rise more than expected in February

US housing starts rose a little more than expected in February, according to data released by the Commerce Department.

Housing starts were up 5.2% to an annual pace of 1.18m, surpassing economists’ expectations for an increase to 1.15m. January’s starts were revised up to 1.12m from 1.099m.

Meanwhile, starts for single-family homes gained 7.2% to an annual rate of 822,000. This marked the best level since November 2007.

Permits for new construction, which are a closely-followed gauge of future demand, were up 3.2% to 1.17m.

Pantheon Macroeconomics said: "Relatively warm February weather likely lifted starts, but with the trend in permits dipping a bit in recent months, we have to expect lower starts in March."