May 23, 2012
Economic Indicators – Residential Construction, Residential Sales
The positive one-two punch of residential construction and residential sales economic indicators are more signs of potential longer term economic recovery. Recently released from the Census Bureau, both indicators are showing positive growth for April 2012.
For April 2012, sales of new single family houses were at an annual rate of 343,000 (seasonally adjusted), representing a 3.3% increase over March 2012 and a good 9.9% jump over the April 2011 figures.
Image Courtesy: Economic Publicist, FRED
The above graph illustrates some favorable trends in the US in sales growth occurring over the past year, but should be cautiously analyzed as fluctuations are occurring on a monthly basis.
On another positive front, the US Census Bureau is reporting a 2.6% increase in privately owned housing starts in April 2012 over the previous month, and an impressive 29.9% increase over the April 2011 rate.
Image courtesy: calculatedriskblog.com
The housing construction indicator graph closely mimics the housing sales graph above, as the indicators are closely tied together.
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