U. S. HOUSING STARTS PLUNGE TO EIGHT-MONTH LOW

U.S. homebuilding fell for a third straight month in May to the lowest level in eight months as construction activity declined broadly, suggesting that housing could be a drag on economic growth in the second quarter. Housing starts weakened despite a dearth of properties on the market, which is hurting sales and boosting prices. Economists blame shortages of labour and land for the downturn. Demand for housing remains strong, underpinned by a tightening labour market. “The recent stall in homebuilding is bad news for growth,” said Gus Faucher, chief economist at PNC Financial in Pittsburgh. Housing starts dropped 5.5 per cent to a seasonally adjusted annual rate of 1.09 million units, the Commerce Department said on Friday. That was the lowest level since September 2016.