ECM US Building Permits Fall 0.4% in August; Housing Starts Decline 5.8%
According to the Census Bureau and Department of Housing and Urban Development, new building permits for private homes in August was at an annual rate of 1.139 million on a seasonally-adjusted basis. This was 2.3% below the August 2015 level of 1.166 million. This data was 0.4% below the July revised rate of 1.144 million (from 1.152 million) and below the 1.17 million analyst were looking for, according to a Thomson Reuters Survey.
The number of new privately-owned housing starts was at pace of 1.142 million annually on a seasonally-adjusted basis, 5.8% below the July revised data of 1.122 million (from 1.121 million). From a year ago, the rate of housing rates for August was 0.9% higher.
The number of completions for privately-owned homes in August was at a seasonally-adjusted annual rate of 1.043 million, an increase of 3.4% from the July rate of 1.08 million and 8.3% higher than the August 2015 rate of 963k.
The US dollar had a knee-jerk reaction to the news. The ICE US Dollar Index is currently edging higher on the day by 6 bps to 95.90. December gold future are unchanged at $1,317 per ounce. US Index futures are indicating a stronger open; S&P 500 futures are trading up 8 points, or 0.38%, to 2,141. Today is the beginning of a two-day FOMC meeting. Tomorrow, the committee will announce its decision on rates and outlook at 14:00 GMT.