US housing starts tumbled 12.3 percent in June

WASHINGTON (AP) — U.S. homebuilders sharply curtailed the pace of construction in June as housing starts plummeted 12.3 percent.

The Commerce Department says that housing starts fell to a seasonally adjusted annual rate of 1.17 million from 1.34 million in May. Housing starts plunged 35.8 percent in the Midwest and declined less severely in the Northeast, South and West.

Still, the drop-off might only reflect the volatile nature of the monthly report. A steady job market and a shortage of existing homes for sale have bolstered housing starts for the first half of 2018. New home construction has climbed 7.8 percent year-to-date.

But builders also face cost pressures from a lack of available land and construction workers, as well as from higher commodity prices from the tariffs announced by President Donald Trump.