ConDig (16-May-17).  Construction of new homes in the US dipped for a second straight month in April and building activity is now down to the lowest point in five months, raising concerns that the sector is starting the second quarter on a weaker footing.

Housing starts fell 2.6% from a month earlier to a seasonally adjusted annual rate of 1.17 million units in April compared with March’s revised estimate of 1.2 million units, according to latest figures from the Commerce Department.

Single-family housing starts in April increased 0.4% to a rate of 835,000 in April from 832,000 in March.

Building permits, which are a sign of future activity, also dipped 2.5% to a seasonally adjusted annual rate of 1.22 million units, but were up 1.4% on the same period last year.

The fall was driven by a 4.5% drop in the single-family segment, while multi-family permits edged up 1.4%.

The sluggish start to the second quarter could be attributed to homebuilders struggling to bridge a major gap in labor shortages and available lots.

Part of the easing in April’s starts and permits may also be weather-related after parts of the country faced snowstorms in March and heavy rains in April, while unusually warm weather may have boosted construction activity earlier in the year.

But analysts and homebuilders still remain fairly bullish over the homebuilding industry this year as demand is expected to remain robust due to a solid labor market and inventory levels continue to wane.

This was underlined after builder optimism for newly-built single-family homes rebounded in May after edging lower in April, according the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).