Housing Starts Fall 4% in February

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ousing starts in the United States dropped 4% during the month to a 1.855 million annual pace, the slowest since August, the Commerce Department said Tuesday.

February was the second straight month housing starts declined. Still, at last month's pace, more homes still would be built this year than in 2003.

Falling construction likely means less business for flatbed trucking companies that haul building materials. Also, in the case of home construction, dry van freight can see a decrease in demand for the delivery of household appliances and furniture.

Commerce said the number of houses already under construction rose to a 1.207 million rate, the highest since October 1979, suggesting builders may be reluctant to begin new projects.

Building permits, a measure of future construction, dropped 1.5% to 1.903 million units at an annual rate from 1.932 million in January.

By region, starts fell 10.6% in South to 839,000 and 7.5% in the West to 479,000 at an annual pace. Starts rose 25.3% in the Northeast to 188,000 at an annual rate and 7.1% in the Midwest to 349,000.