WASHINGTON - The number of housing projects builders broke ground on in February plunged by 11 percent, the sharpest decline in nearly a decade, as bad weather and an uncertain economic climate took its toll on the residential construction market.
Housing construction dropped to a seasonally adjusted annual rate of 1.62 million units in February, representing an 11 percent decline from the month before, the Commerce Department reported Tuesday.
The level of housing activity in February was weaker than the 1.75 million pace economists were forecasting.
The housing and residential construction markets have been one of the few bright spots of the ailing economy. But Tuesday's report raised new questions about future months. Economists said they expect some slowing in the housing construction market, but still believe the industry would stay in relatively good shape, particularly because interest rates are so low.
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