Written by: Sophie May
Building figures indicate the demand of private consumers and businesses for housing, offices and factories. This also offers an insight into the outlook for the construction industry, impacting on the stocks of home builders, mortgage lenders and furnishings companies.
Since people must feel confident in their own financial position before buying a house, and businesses must be certain of continued success, these figures also give a revealing insight into the general economic momentum.
Home sales
Data on new home sales reveals how many newly constructed homes there are with a closed sale during the month. Data on existing home sales reveals how many previously constructed homes there are with a closed sale during the month. People have to be feeling confident in their own financial position to buy a house, making these figures a good reflection of the overall economy.
Housing starts
This gives the number of residential units on which construction is begun each month. This shows a consumer’s confidence in their long-term financial situation.
Construction Spending
This gives the value of new construction activity on residential, non-residential and public projects. Since businesses only put money into the construction of new factories or offices when they are confident that current and expected future demand justifies the