While the U.S. economy has disappointed along many dimensions thus far in twenty fifteen, one segment of the economy that appears to be coming back to life is housing. Residential builders broke ground on homes in April at the fastest pace in more than seven years. Rising construction is helping to trigger retail sales in related categories, including at stores like Home Depot and Lowe’s.
As reported by the Associated Press among others, construction of single family homes is picking up due to the end of a dismal winter that helped to shutdown construction sites. But it’s important to note that single family home building rose in regions of the country where winter weather had little impact. Moreover, the rate of approved building permits, which foreshadows future construction, expanded 10 percent from March to April.
The housing market is so large that its improving fortunes are helping to boost the outlook for the entire U.S. economy. In response to information indicating stronger than expected residential construction, analysts at Barclays raised their forecast for economic growth during the current quarter to two point seven percent, though admittedly that was only a bit above the previously standing forecast of two point six percent.
