The pace of U.S. home construction fell 2.1 percent in May to a lower rate than analysts had expected for the lifeless housing market while building permit activity, a signal of future building plans, increased more than anticipated, a government report showed on Tuesday.
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 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 3.0 percent to a pace of 1.501 million units.