June 20, 2007	Wednesday	Jamadi-us-Sani 04, 1428

WASHINGTON, June 19: US new home construction fell 2.1 per cent in May underlining a persistent slump in the country's housing market, according to a government report on Wednesday.

The Commerce Department said housing starts declined to a seasonally adjusted annual rate of 1.474 million homes, in line with most economists' forecasts.

The pace, however, remains a hefty 24.2 per cent below the rate of a year ago, reflecting the entrenched downturn in the property market, which is struggling to regain its footing.

The agency revised down its estimate for April new home building to a pace of 1.506 million from an original estimate of 1.528 million units.

The report also revealed that housing permits, which give an indication of future housing starts, rose three per cent to a seasonally adjusted annual rate of 1.501 million units in May. That compared with expectations of a pace of 1.470 million.

—AFP