Japan's housing starts declined for the first time in six months in June, though at a slower-than-expected pace, the Ministry of Land, Infrastructure, Transport and Tourism said Friday.

Housing starts fell 2.5 percent year-over-year in June, reversing a 9.8 percent surge in the previous month, which was the biggest rise since June 2015.

Economists had forecast a 2.7 percent drop for the month.

Annualized housing starts decreased to 1.0 million in June from 1.02 million in the preceding month. It was expected to fall to 998,000.

Meanwhile, construction orders received by 50 big contractor rose 1.5 percent annually in June, in contrast to a 2.4 percent fall a month ago.