The Strategist

Number of new buildings in the US falls worse than forecast in July


08/19/2021 - 12:45



Number of new homes in the US with construction starts in July fell 7% from the revised June figure to 1.534 million, the country's Commerce Department said in a statement.



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Analysts polled by DailyFX had expected the figure to fall to 1.6 million from the initial June level of 1.643 million. However, the June figure was revised upwards to 1.65 million new buildings.

Compared to July 2020, when the indicator stood at 1.497 million, US new home sales in the reporting month showed an increase of 2.5%.

At the same time, the number of building permits in the US rose 2.6% to 1.635 million from 1.594 million in June. Analysts expected a figure of 1.61 million permits.

New Home Sales is an important indicator of the real estate market and the economy as a whole. Its increase leads to an increase of new home owners spending on furniture and utilities, which in turn stimulates the demand for goods, services and labour. In addition, more than half of all construction in the US is residential. Thus, the dynamics of residential real estate sales are passed down the chain to other sectors of the economy.

source: dailyfx.com




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