U.S. Housing Starts Plunge 8.5% In August, Much More Than Expected

(RTTNews) - After reporting significant increases in new residential construction in the U.S. over the two previous months, the Commerce Department released a report on Wednesday showing housing starts pulled back by much more than expected in the month of August.

The Commerce Department said housing starts plunged by 8.5 percent to an annual rate of 1.307 million in August after surging by 3.4 percent to a revised rate of 1.429 million in July.

Economists had expected housing starts to tumble by 4.1 percent to an annual rate of 1.370 million from the 1.428 million originally reported for the previous month.

The report also said building permits dove by 3.7 percent to an annual rate of 1.312 million in August after slumping by 2.2 percent to a revised rate of 1.362 million in July.

Building permits, an indicator of future housing demand, were expected to jump by 1.2 percent to an annual rate of 1.370 million from the 1.354 million originally reported for the previous month.