New construction of US homes picked up in February to the fastest pace in five months in a fresh sign of strength in the economy, Commerce Department data showed Wednesday.

Housing starts rose to an annual rate of 1.178 million units from 1.120 million in January.

For the first two months of the year, new construction was up 15.2 percent over a year ago, according to the data.

Construction of both single-family and multiple-family units grew firmly in February, and strength was seen in all regions except the Northeast, where winter weather may have been part of a 50 percent fall in housing starts.