US Housing Starts tumbled 11.3% in August, Building Permits jumped 6.9%

• Housing Starts drops sharply while Building Permits rose above expectations in the US in August.
• US Dollar Index stays near daily lows below 105.00 after the data.

The monthly data published by the US Census Bureau revealed on Tuesday that Housing Starts tumbled 11.3% on a monthly basis in August, following a 2% increase (revised from 3.9%) recorded in July, to a seasonally adjusted annual rate of 1,283 million. This reading came in worse than the market expectation for a decline to 1,44 million. 

In the same period, Building Permits, which rose 0.1% in July, increased 6.9%., to a seasonally adjusted annual rate of 1,543,000; surpassing the 1,445,000 of market consensus. 

Market reaction

The US Dollar Index showed no immediate reaction to these figures and was last seen fluctuating near daily lows under 105.00.