This morning, the Commerce Department released its July report on U.S. home construction, indicating the highest level of housing starts since October of 2007. This article from CNBC highlights some of the details from the report.
U.S. housing starts rose to a near eight-year high in July as builders ramped up construction of single-family homes, suggesting that the economy was firing on almost all cylinders.
The Commerce Department report on Tuesday added to solid payrolls, retail sales and industrial output data in suggesting the economy got off to a strong start in the third quarter. The steady flow of upbeat economic reports has bolstered views that the Federal Reserve will raise interest rates in September.
Groundbreaking increased 0.2 percent to a seasonally adjusted annual pace of 1.21 million units, the highest level since October 2007. June’s starts were revised sharply higher to a 1.20 million-unit rate from the previously reported 1.17 million-unit pace.
Housing starts have now been above a one million-unit pace for four straight months. Economists had forecast groundbreaking on new homes rising to a 1.19 million-unit pace last month.
Housing is getting a tailwind from a tightening labor market, which is encouraging young adults to move from their parents’ basements and set up their own lodgings. The firming housing market is bolstering profits at Home Depot.
Groundbreaking on single-family housing in the West increased to its highest level in nearly eight years.
