Economic news for the US this week showed more improvements, this time in the housing industry. If this trend persists, it should have a positive impact on the rest of the economy especially on retail sales of big-ticket items. It should help car and furniture sales.
Housing starts in the US surged 22.6% to an annualized rate of 1,496 thousand in July, well above forecasts of 1,240 thousand in June. It is the highest reading since February, before the coronavirus crisis took hold in earnest, and the biggest jump since October of 2016.
Housing starts over the past 5 years
Single-family housing starts jumped 8.2% and the volatile multi-family segment went up a whopping 56.7%. Starts in the Northeast and the South saw the biggest increases.
Building permits leaped 18.8% from a month earlier to a seasonally adjusted annual rate of 1.5 million in July, the highest level since January.
Single-family permits were up 17.0% to a rate of 983 thousand and permits for the volatile multi-segment market climbed 22.5% to a rate of 512 thousand.
Across regions, authorizations increased in the South (13.7% to 754 thousand), the West (29.1% to 377 thousand), the Midwest (23.8% to 224 thousand) and the Northeast (14.8% to 140 thousand).
Building permits over the past 5 years
The housing statistics point to more good news in the months ahead for the rest of the US economy.
Written by: Paul Lengemann, BullsNBears economist
This appeared first on https://bullsnbears.com/
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