Construction of new homes in USA shrinks in March 2017

Construction of new homesConstruction of new homes in USA shrinks in March to a four-month low. The initial construction of single-family homes declined by 6.8% to 1.22 million units per year. In February, the value was 1.30 million units, which was the highest figure of nearly a decade, according to data from the Ministry of Commerce. The expectations for March were for value of 1.25 million units.

Permits, which are considered to be litmus for construction in the future, increase by 3.6% to 1.26 million per year.

The construction sector data are volatile and the worsening in March might be due to the change of time. For example, February was unusually warm and it gave impetus to construction.

Generally, the foundations speak of a stable outlook for the housing industry, with companies’ attitudes close to the highest levels for over 10 years. In addition, interest rates on mortgages are down from the peak reached after the presidential election. The builders are still hampered by lack of workforce and space and are making efforts to respond to demand backed by a stable labor market.