Groundbreaking for new U.S. home construction slowed in July, falling 1.0% to a seasonally adjusted annual rate of 581,000 units as building permits dropped 1.8% to an annual rate of 560,000 units, according to Commerce Department data released today.
The rate for housing starts missed the 600,000 level predicted by Thomson Reuters' poll of economists. Thomson had projected a 580,000 rate for permits.
The 1.0% decrease in starts follows a 6.5% gain in June to 587,000 units, originally reported as a 3.6% rise to 582,000 units. In June, permits were up 10.0% to 570,000 units.
Year-over-year housing starts were off 37.7% from a year ago, when 933,000 units were started. The permits figure was 39.4% below the year-ago rate of 924,000.
In the regions, home starts in the Midwest climbed 12.9% to 114,000, from 101,000. In the Northeast, starts dropped 16.3% to a 67,000 rate from 80,000 in last month's report. In the West, starts dipped 1.6% to 124,000 units from 126,000 the prior month, while in the South, starts fell 1.4% to 276,000 units from 280,000 units in June.
Meanwhile, permits fell 9.2% in the South to 277,000 from 305,000, in the Northeast permits decreased 5.2% to a 55,000 rate from 58,000 in last month's report, in the Midwest, permits rose 14.1% to 105,000 from 92,000, while permits were up 7.0% in the West to 123,000 from 115,000.
Housing completions in the month slid 0.9% to 802,000 units.
