US Housing Starts Above Forecasts
Housing starts in the US jumped 9.2 percent from a month earlier to an annualized rate of 1,282 thousand in August of 2018, recovering from a 0.3 percent drop in July and beating market expectations of a 5.8 percent rise. Starts increased in the South, the Midwest and the West and were flat in the Northeast.
Single-family homebuilding, which accounts for the largest share of the housing market, increased 1.9 percent to a rate of 876 thousand units in August; and starts for the volatile multi-family housing segment surged 27.3 percent to a rate of 392 thousand. Starts rose in the Midwest (9.1 percent to 191 thousand), the West (19.1 percent to 318 thousand) and the South (6.5 percent to 674 thousand), but were steady in the Northeast (at 99 thousand). Starts for July were revised to 1,174 thousand from 1,168 thousand.
Building permits dropped 5.7 percent to a seasonally adjusted annual rate of 1,229 thousand, the lowest reading since May of 2017. It compares with market expectations of a 0.1 percent decline to 1,310 thousand and follows a 1.5 percent rise in July. Single-family authorizations fell 6.1 percent to 820 thousand and multi-family permits decreased 4.9 percent to 409 thousand. Declines were seen in all regions: Northeast (-19.2 percent to 101 thousand), the Midwest (-1.7 percent to 178 thousand), the West (-8.4 percent to 304 thousand) and the South (-2.9 percent to 646 thousand).
Year-on-year, housing starts increased 9.4 percent while building permits fell 5.5 percent.