Evidence mounts of a slowing economy

THE ASSOCIATED PRESS

WASHINGTON -- Housing construction last month dipped to its lowest level in almost a year, providing fresh evidence that the Federal Reserve's six interest rate increases are beginning to slow the economy.

Builders began work on new homes at a seasonally adjusted annual rate of 1.59 million units in May, a 3.9 percent drop from April's level, the Commerce Department reported Friday.

The bigger-than-expected decline left housing starts at their lowest level since last June, when the Fed's latest cycle of interest-rate increases began.

The Fed's rate increases are designed to gradually slow the red-hot economy.

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