U.S. housing starts increased unexpectedly in July, according to data released by the U.S. Commerce Department. Housing starts increased 2.1 percent to a seasonally adjusted annual pace of 1.2 million units, the highest level since February, the Commerce Department said on Tuesday. June's starts were largely unchanged at a 1.19 million-unit rate.
Building permits dipped 0.1 percent to a 1.15 million-unit rate last month. Economists polled by Reuters had forecast housing starts slipping to a 1.18 million-unit pace last month and building permits rising to a 1.16 million-unit rate.
Investment in residential construction contracted in the second quarter for the first time in more than two years.
That, together with an outright decline in inventory investment, a continued downturn in business spending and weak government outlays, held gross domestic product to a 1.2 percent annualized growth rate during the quarter.
Investment in residential construction contracted in the second quarter for the first time in more than two years.
That, together with an outright decline in inventory investment, a continued downturn in business spending and weak government outlays, held gross domestic product to a 1.2 percent annualized growth rate during the quarter.