Drop in U.S. Housing Starts Shows Industry May Weigh on Growth

Vincent Reinhart Sees a Level Shift in U.S. Housing

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Three straight months of declines in new-home construction show U.S. homebuilding may weigh on second-quarter growth, Commerce Department data showed Friday.

May starts were pushed lower by declining construction in South, which reached the weakest level since October 2015, and in the Midwest. Construction of single-family properties dropped 3.9 percent to the lowest since September, while ground-breaking on multifamily units declined for a fifth straight month.