US homebuilding jumps more than expected

0 Comments | AFP, May, 2008

WASHINGTON (AFP) — US homebuilding showed a surprisingly strong jump in April, signaling a ray of hope amid the rubble of the worst housing slump in decades, according to government data released Friday.

Housing starts and permits hit their highest levels since February, and new home construction rebounded from a 17-year low in March, the Commerce Department data showed.

Starts rose 8.2 percent in April from March to an annual rate of 1.032 million units. It was the strongest gain since January 2006 and sharply higher than analysts' consensus forecast for a cutback to 940,000 units.

Construction permits, a bellwether of future activity in the housing sector, climbed a robust 4.9 percent in April to 978,000 units. That, too, soundly topped analyst...