WASHINGTON -- Sales of new single-family homes fell in May for the second month in a row, the Commerce Department reported Wednesday, prompting analysts to say they expect any economic recovery to be modest.

New homes sales slumped 3.3%, to a seasonally adjusted annual rate of 474,000 from a revised 490,000 in April. Moreover, with the revisions to April, sales for the month dipped 0.2%, wiping out the 1.2% increase reported last month.

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