02:13 PM EDT, 08/16/2024 (MT Newswires) -- Housing starts fell 6.8% to a 1.238 million annual rate in July, compared with expectations for a 1.33 million rate, with single-family housing starts lower and multifamily starts higher.

Building permits fell 4% to a 1.396 million rate in July. Both single-family and multifamily permits declined. However, homes permitted, but not started, increased 2.6%, suggesting starts may improve in the coming months.

The number of homes under construction and home completions both declined, a negative for the number of homes for sale in the near term. Completions rose 14% from a year earlier.

The preliminary Michigan Sentiment index rose to 67.8 in August from 66.4 in July, above expectations for a reading of 66.9. The assessment of current conditions declined in August, while the near-term outlook improved based on expectations for the upcoming election.

Michigan said that inflation expectations were in line with the previous month at 2.9% for the one-year horizon and 3% for the five-year period.

State-level data from the Bureau of Labor Statistics showed that the unemployment rate rose in 13 states in July, fell in one state and held steady elsewhere.

The largest gains were in Massachusetts, Michigan, Minnesota, and South Carolina. South Dakota had the lowest jobless rate, while the District of Columbia had the highest.

The Q3 GDPnow estimate from the Atlanta Fed is for a 2% increase, revised down from a 2.4% gain reported on Thursday. The next update is scheduled for Aug. 26.