The Commerce Department reported on Thursday the housing starts declined by 5.1 percent m-o-m in August to a seasonally adjusted annual pace of 1.416 million, while building permits dropped by 0.9 percent m-o-m to an annual rate of 1.470 million.

Economists had forecast housing starts decreasing to a pace of 1.478 million units last month and building permits rising to a pace of 1.520 million units.

Data for July was revised to show homebuilding growing to a pace of 1.492 million units, instead of increasing at a rate of 1.496 million units as previously reported.