A US government report shows that housing starts fell by more than expected last month, though permits for future construction rose.
The Commerce Department said housing starts fell 5% from July to a seasonally adjusted annual rate of 571,000 units. This was the biggest monthly fall since April.
July's starts were revised down to a 601,000 unit pace, which was previously reported as 604,000. Economists had forecast housing starts to fall to 590,000 in August.
An overhang of previously owned homes on the market has left builders with little appetite to break ground on new projects and is frustrating the economy's recovery from the 2007-09 recession. Housing starts are at less than a third of their peak during the housing boom. Compared with August of last year, starts were down 5.8%.
New building permits unexpectedly rose 3.2% to a 620,000-unit pace last month. economists had expected a drop.
