US housing construction is off to slow start in May
June 18, 2014, 12:00 am TWN
WASHINGTON--New U.S. home construction and applications for building permits slowed sharply in May, government data released Tuesday showed, new evidence of weakness in the housing market.
The U.S. Commerce Department said housing starts fell 6.5 percent from April to an annual rate of 1,001,000 units.
Building permits, an indicator of future activity, dropped 6.4 percent to an annual pace of 991,000.
The department downwardly revised April numbers to 1,071,000 starts and 1,059,000 permits.
The May declines came in significantly steeper than analysts expected. The consensus estimate was for 1,028,000 starts and 1,050,000 permits.
Compared with a year ago, starts were 9.4 percent higher in May while permits were down 1.9 percent.
New construction of single-family homes, the largest part of the housing market, fell 5.9 percent month-over-month.
Starts for multi-family housing of five units or more dropped 8.3 percent.
The slackness in the housing market has persisted beyond the first few months of the year when bad winter weather was blamed for much of the weakness.