US housing starts drop by more than expected in August

Homebuilding activity in the States fell sharply last month, although a key lead indicator pointed to somewhat more buoyant conditions in coming months.

According to the U.S. Department of Commerce, in seasonally adjusted terms housing starts fell at a month-on-month pace of 11.3% to reach an annual rate of 1.283m (consensus: 1.439m).

However, housing permits shot up by 6.9% in comparison to the previous month, reaching a rate of 1.543m (consensus: 1.44m).

Starts fell across the entire country save for the Northeast, where they edged up by 1.0%.

Single-family housing starts dropped by a more restrained 4.3% over the month to a rate of 941,000, while permits rose by 2.0% to 949,000.

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