The pace of US home building fell 2.1 per cent in May to a slightly lower rate than analysts had expected, a government report showed today.
The Commerce Department said housing starts set an annual pace of 1.474 million units in May compared with a 1.506 million unit pace in April. Economists had forecast May housing starts to drop sharply to a 1.480 million unit pace from the 1.528 million rate originally reported for April last month.
Building permits, which signal future construction plans, rose in May by 3 per cent to a pace of 1.501 million units.
Permits for single-family homes fell 1.8 per cent to their lowest level since July 1997 but permits for multi-family units jumped 16.5 per cent.
Today's data comes a day after a report indicating that home-builder confidence is at its lowest level in over 16 years.
The National Association of Homebuilders/Wells Fargo Housing Market Index dropped two points to 28 in June. The index of builder sentiment had not dipped that low since it reached 27 in 1991. Readings below 50 indicate more builders view market conditions as poor rather than favourable.
The dollar was little changed while the Treasury market showed little reaction to the data.