18.04.201800:23:00UTC+00U.S. Housing Starts, Industrial Production Increased in March

U.S. homebuilding grew in March amid a rebound in the construction of multi-family housing units. Separate data showed a strong rise in industrial production in the same month as cold weather raised utilities output and production at mines soared.

The reports highlight the economy's underlying strength even though growth in the first quarter is expected to have slowed after three consecutive quarters of brisk expansion.

According to data from the Commerce Department, housing starts increased 1.9 percent to a seasonally adjusted annual rate of 1.319 million units. Data for February was revised up to show a 1.295 million-unit pace instead of the previously reported 1.236 million units. Permits for future homebuilding rose 2.5 percent to a rate of 1.354 million units in March.

Demand for housing is being driven by a robust labor market, which is supporting the economy. Single-family home construction fell in the Northeast, South and West, but rose in the Midwest.

In a separate report, the Federal Reserve said industrial production grew 0.5 percent in March after jumping 1.0 percent in February.

It was boosted by a 3.0 percent surge in utilities production and a 1.0 percent increase in output at mines. Manufacturing production, however, rose only 0.1 percent after soaring 1.5 percent in February.

U.S. financial markets were little moved by the data. The dollar climbed against a basket of currencies, while U.S. Treasury prices fell marginally.