MEMO: HOUSING CONSTRUCTION DIPS, BUT STILL REMAINS HEALTHY

Housing construction dipped in May but remains at a healthy level, further evidence of the industry's resilience in the face of a faltering national economy.

Even as the rest of the economy has slowed markedly since the second half of last year, housing activity has remained stable, thanks to low mortgage rates and falling interest rates in general.

The number of new housing units builders began work on last month dipped by 0.4 percent to a seasonally adjusted annual rate of 1.62 million, following a strong 2.3 percent increase in April, the Commerce Department reported last week.

Even with May's decline, which was smaller than many analysts were expecting, the level of housing starts remained solid, economists said.