U.S. Housing Starts Plunge Much More Than Expected In May

(RTTNews) - The Commerce Department released a report on Wednesday showing a steep drop by new residential construction in the U.S. in the month of May.

The report said housing starts plunged by 9.8 percent to an annual rate of 1.256 million in May after jumping by 2.7 percent to a revised rate of 1.392 million in April.

Economists had expected housing starts to edge down to an annual rate of 1.360 million from the 1.361 million originally reported for the previous month.

The report also said building permits slumped by 2.0 percent to an annual rate of 1.393 million in May after tumbling by 4.0 percent to a revised rate of 1.422 million in April.

Building permits, an indicator of future housing demand, were expected to rise to an annual rate of 1.430 million from the 1.412 million originally reported for the previous month.