U.S. new residential construction sank 5.2% in September to an annual rate of 1.221 million, unexpectedly continuing an August slump as building permits also dipped.
A report released by the Commerce Department on Monday unexpectedly showed an extended nosedive in new residential construction in the U.S. in the month of September.
The Commerce Department said housing starts plunged by 5.2 percent to an annual rate of 1.221 million in September after plummeting by 5.9 percent to a revised rate of 1.288 million in August.
The continued slump came as surprise to economists, who had expected housing starts to jump by 2.4 percent to an annual rate of 1.305 million from the 1.275 million originally reported for the previous month.
The report also said building permits dipped by 0.2 percent to an annual rate of 1.400 million in September after tumbling by 2.1 percent to a revised rate of 1.403 million in August.
Building permits, an indicator of future housing demand, were expected to fall by 0.5 percent to an annual rate of 1.387 million from the 1.394 million originally reported for the previous month.
At 10 am ET, the National Association of Realtors is scheduled to release its report on pending home sales in the month of September at 10 am ET. Pending home sales are expected to decrease by 0.4 percent in September after rising by 0.3 percent in August.