US: Housing starts fell 11.3% in August while building permits rose 6.9%

• Housing starts fall sharply while building permits rise above expectations in August.
• The Dollar Index remains near daily lows below 105.00 after the data was released.

Monthly data released by the US Census Bureau revealed on Tuesday that Housing starts fell 11.3% monthly in August, following the 2% increase (revised from 3.9%) recorded in July, to a seasonally adjusted annual rate of 1,283 million. The result worsened market expectations, which expected a decrease to 1.44 million.

In the same period, the construction permits, which rose 0.1% in July, increased 6.9%, to a seasonally adjusted annual rate of 1,543,000; exceeding the 1,445,000 market consensus. This is the largest rise recorded by the indicator since February.

Market reaction

The Dollar Index showed no immediate reaction to these figures and fluctuates near daily lows below 105.00.