Housing Kicks up a Notch

MARTIN CRUTSINGER
AP Economics Writer

WASHINGTON

Construction of new homes and apartments, defying forecasts of a housing slowdown, shot up in January at the fastest pace in more than three decades.

The Commerce Department reported Thursday that building activity was up 14.5 percent last month when compared to December, pushing construction to a seasonally adjusted annual rate of 2.276 million units.

A 33 YEAR HIGH >

ALSO: Permits for future construction, an indicator of builder confidence, posted an unexpected increase, up 6.8 percent to a 2.217 million unit rate. Economists had expected permits to decline to a 2.062 million unit pace.