than expected in June to their lowest level in eight months, a
government report showed on Tuesday, supplying further evidence
the economy was losing momentum during the second quarter.
KEY POINTS:
* The Commerce Department said housing starts dropped 5.0
percent to a seasonally adjusted annual rate of 549,000 units,
the lowest level since October.
* It was the second straight month of decline in groundbreaking
activity and was well below market expectations for a
580,000-unit rate.
* May’s housing starts were revised down to show a 14.9 percent
decline, which was previously reported as a 10.0 percent drop.
* Compared to June last year, starts were down 5.8 percent, the
biggest decline since November.
* There was an unexpected 2.1 percent rise in applications for
building permits to a 586,000-unit pace in June.
* That followed a 5.9 percent drop in May and compared to
analysts’ expectations for a slip to 570,000 units.