New residential construction in the U.S. decreased in the month of August, according to a report released by the Commerce Department on Thursday, although the report also showed a notable increase in building permits.

The report said housing starts fell 3.0 percent to an annual rate of 1.126 million in August from the revised July estimate of 1.161.

Economists had expected housing starts to drop to a rate of 1.168 million from the 1.206 million originally reported for the previous month, reflecting a 3.2 percent decrease.

On the other hand, the Commerce Department said building permits rose 3.5 percent to an annual rate of 1.170 million in August from the revised July rate of 1.130 million.

Building permits, an indicator of future housing demand, had been to climb 3.7 percent to a rate of 1.160 million from the 1.119 million originally reported for the previous month.

The material has been provided by InstaForex Company – www.instaforex.com