Is popular social networking site Facebook losing its popularity? According to a new report, yes it is. 

With 687 million users worldwide at the start of June, Facebook is approaching 700 million users. That's definitely a great news for all Facebook lovers. But, unfortunately for this Palo Alto, California-based social network,  growth is slowing down and also has suffered major traffic drops in the United States and Canada last month, so says a report from 'Inside Facebook'.  Inside Facebook, closely tracks Facebook's developments and trends.

Most of the new users continue to come from countries that are relatively late in adopting Facebook, as has been the trend for the past year. But the overall growth has been lower than normal for the second month straight, which is unusual, said Eric Eldon of Inside Facebook in a report about the world's most popular social network's Web traffic.

As per the report, Facebook gained 11.8 million new users worldwide in May, down from 13.9 million new accounts in April. Before April and May, the social media giant had by an average, 20 million new users a month for the last 12 months. However, while there have been a few months that have registered lower growth numbers, they have not been back to back, said the report.

Traffic drop most pronounced in the U.S. and Canada

The report further stated that in United States, Facebook lost nearly 6 million users in May, a fall from 155.2 million at the start of May to 149.4 million at the end of it. On the other hand, in Canada loss was estimated at 1.52 million to 16.6 million during the month.

The report mentioned that the United Kingdom, Norway and Russia, all reported losses of more than 100,000. In response to the Inside Facebook report, a company spokesperson in a statement said that the company is happy with its growth. However She did not mention the report nor its findings in her statement.