In an unexpected turn of events, US new residential construction saw a significant drop in January, as per the report issued by the Commerce Department on Friday.
The department's report revealed a steep 14.8 percent drop in housing starts to an annual rate of 1.331 million in January, a substantial decrease from December's upwardly adjusted rate of 1.562 million. This unexpected change defies economists' predictions, who anticipated an increase in housing starts to an annual rate of 1.470 million, up from the initially reported 1.460 million for the prior month.
There was also a slight decline in building permits, a key measure of future housing demands. They fell by 1.5 percent to an annual rate of 1.470 million in January, down from the adjusted rate of 1.493 million in December. This goes against the grain of predictions which projected an increase to a rate of 1.510 million, up from the originally reported rate of 1.495 million for the month prior.
