Housing Starts Fell Again

Housing starts were weaker than expected last month. Total starts fell 2.2% from July which was revised slightly lower due to lowered single-family starts. It was the third consecutive monthly decline in starts.

Housing starts were down 10.0% versus the recent peak in February.

Single family starts fell 4.4% from the previous month and fell during five of the last six months. Single-family starts were down 14.% from the February peak.

Multi-family starts rose after two months of decline. Versus a March peak, multi-family starts were down 5.3%.

Building permits fell 2.5%, down for the first month since March. Permits for single family homes rose for the fourth month in five. Permits for 5-or-more-unit structures slumped 18.5% m/m.

Initial claims for unemployment insurance were higher than expected in the latest week, though they declined slightly from the prior week which was revised higher.Claims fell 9,000 versus the prior week but they have risen 15.8% versus the weekly low of this past July.

The four-week moving average rose to 418,500, up 10.0% from the recent low.

Continuing claims for unemployment insurance rose 2.0% but the prior week's level was revised down. Continuing claims have risen 4.0% since the weekly low of this past July.

The weekly insured rate of unemployment was stable at 2.8% for the fourth consecutive week.

The Philadelphia Fed’s index of general business conditions for September improved about as expected, but only slightly.

New orders and shipments turned positive after the one month drops to negative in August, but unfilled orders remained negative for the third straight month. Inventories continued to run off after a one month turn to positive in August.

The business conditions index reflects a separate survey question, not the components.

The prices paid index fell modestly, but remained quite positive as it has since March.