Rise in Construction Signals Recovery of US Economy
Published By : 20 May 2015 | Published By : QYRESEARCH
The United States housing market seems to have ended what seemed like a slumping economy.
Builders in the last month broke ground on homes at the most rapid pace they have in over seven years. This hike in construction activities is helping the increase in sales at stores such as Lowe’s and Home Depot. The stepped-up construction has also improved the likelihood that the United States economy is poised to grow after probably slumping earlier this year.
In part, the rise in housing begins in April and showed a bounce back from the disappointing winter that not only shut down construction sites across the country but also adversely affected the growth of the overall economy in the United States. Even though builders are likely to struggle in order to keep up with the robust pace that was evident in April, there is still definite reason for hope and optimism.
Firstly, the construction of single family houses went up in those regions of the United States where the winter had not had much impact. Secondly, the rate of approved building permits went up a strong 10 per cent from March to April. Approved building permits have always been a harbinger of construction in the future, and this hike has reflected buyer demand.
Michael Dolega, senior economist at TD Bank says that if one is willing to purchase a house then its means that the person’s confidence, job prospects, and monetary fortunes are heading north.
The signs of a strengthening economy come after a rather bleak first three months. Growth was considered to have declined from January to March owing to lower oil prices slicing into factory orders, stronger dollar tightening exports in the United States, and as a result of a harsh winter.