U.S. residential building activity probably ebbed in February

Hampered by inclement weather conditions in the latter half of the month, the number of new housing units started probably fell by 1.4% to a seasonally adjusted annual rate of 1.05 million in February, marginally eclipsing the average activity recorded over the prior six months. 

Societe Generale notes as follows on Monday:

• We expect the entire pullback to be attributable to reduced multifamily building during the reference period. 
  
  
• The number of new multifamily units started likely fell by 5.7% to 365,000 in February, reversing all but a fraction of January's reported gain. In contrast, single-family starts probably remained on a saw-toothed pattern, climbing by 1.0% to 685,000. 
  
  
• Our forecasts would place the level of new starts over the first two months of 2015 2.7% annualized below their October-December average, following a solid 14.3% fall-quarter gain.
  
  
• Reduced single- and multifamily issuance in February probably left the number of new building permits issued at a seven-month low of 1.035 million.