Construction in U.S. unexpectedly dipped in December despite the unusually mild winter, according to new data of the Commerce Department.
Housing starts fell by 2.5 percent over a month earlier to a seasonally adjusted annual rate of 1.15 million. This brought the annual rate to 1.149 million units compared to November's revised pace of 1.179 million. Starts had climbed in November by 10.1 percent.
Building permits, an indication of future building activity, also had a weaker showing, falling 3.9% to 1.23 million in December. However, permits rose 12 percent in 2015 to an estimated 1.18 million units, and the outlook for 2016 is somewhat optimistic.
Housing construction last year had its best year since 2007, when the housing bubble burst and triggered a recession. However, new building permits are still running at roughly half their 2005 peak, and signals from the sector have been mixed in recent months.
