Meanwhile, demand for housing remained at the same level.
According to the Commerce Department, groundbreaking reduced by 5.8%. The number of issued permits for future construction reduced by 0.4%, whereas permits for single-family homes, which accounts for the largest segment of the market, grew by 3.7%.
Last month's decline in starts was just below their second-quarter average, but economists expect that residential construction will encourage economic growth in the 3rd quarter.
Demand for housing is caused by a tightening labor market triggering growing wages.