Washington ? Housing construction posted a surprisingly large increase in February, bolstered by strength in all parts of the country except the West.

While the surge in construction was far better than the continued decline economists had expected, experts viewed the rebound as a temporary gain given all the problems the housing industry still faces.

The Commerce Department reported Tuesday that construction of new homes and apartments jumped 22.2 percent in February compared with January, pushing total activity to a seasonally adjusted annual rate of 583,000 units.

Meanwhile, the Labor Department said wholesale prices edged up a slight 0.1 percent in February as a big drop in food costs offset a second monthly increase in energy prices.

After the news, investors reignited Wall Street’s rally, snapping up financial and homebuilder stocks among others. The Dow Jones industrial average and other major indexes all finished with gains of more than 2 percent, with the tech-laden Nasdaq composite index jumping more than 4 percent.

The protracted housing downturn, rising foreclosures and a deepening U.S. recession have battered homebuilders and scared off many potential buyers. Analysts expect mounting job losses and foreclosures and tightening lending standards to continue to suppress home sales.

“Building permits are indicating that starts could improve modestly in coming months, but we believe the reprieve will be short-lived,” Soleil Securities Group analyst Anna Torma wrote in a research note.

Even with the big increase, construction activity remains 47.3 percent below where it was a year ago. The strength in February was led by a sharp gain in apartment construction, which can be highly volatile from month to month.

All areas of the country reported an increase in February, except the West, which has been hardest hit by the housing slump.

Patrick Newport, U.S. economist for IHS Global Insight, said the uptick in construction was driven by improving weather in February, particularly in the Northeast, where a severe winter had slowed construction in December and January.

“The numbers are so low that any increase will give you a big percentage increase,” Newport said.

He said a surer sign of a turnaround would be a three-month sustained increase in single-family permits.

“We got several months over the past three years where permits increased only to drop the following month,” Newport said.

The 0.1 percent increase in wholesale inflation was much lower than the 0.8 percent surge in January and smaller than the 0.4 percent increase economists had expected. Compared with a year ago, wholesale prices are actually down 1.3 percent.

Core inflation, which excludes energy and food, edged up 0.2 percent in February, only slightly higher than the 0.1 percent gain economists had expected. Core prices had risen 0.4 percent in January.

The world economy remains soft and is getting weaker, making it difficult for companies to raise prices, said Nigel Gault, chief US economist at IHS Global Insight.

“Inflation is clearly very quiet,” Gault said. “The risks, if we’re looking over the rest of the year, are more toward deflation than inflation, but deflation certainly is not here yet.”