Housing Starts Tumble 1.3 Percent

Construction of new homes fell in May for the fourth time in five months as builders remained cautious over the effects of a slowing economy.

But analysts said evidence is mounting that housing activity may be stabilizing, although few see much improvement during the remainder of the year.

Construction of new single-family homes and apartments fell 1.3 percent in May, to a seasonally adjusted 1.24 million annual rate, the department said.

That was down from a month earlier, when housing starts edged up 0.8 percent to a revised 1.26 million, stronger than the initial 1.24 million estimate.