June housing starts beat forecasts at 1.43 million, but building permits and industrial output fell short, capping dollar gains.
The US Dollar Index held near 100.70 on Friday, erasing early gains after mixed economic data. Stronger-than-expected housing starts and consumer sentiment provided temporary support, but weaker building permits and industrial production limited upside.
US housing starts rose to an annualized 1.43 million in June, surpassing the 1.31 million forecast and up from 1.20 million in May. However, the increase was driven by multifamily units, while single-family construction declined for a third straight month. Building permits dropped to 1.37 million, below the 1.40 million estimate. Industrial production grew just 0.1% month-over-month, missing the 0.2% consensus.
Consumer sentiment improved to 54.4 in July from 49.5, exceeding expectations, while one-year inflation expectations eased to 4.2%. Cleveland Fed President Beth Hammack noted persistent price pressures but stopped short of signaling immediate rate hikes.