The housing industry has been weakening for several months and the new housing starts report confirmed the trend, falling 5.3% in September according to the Commerce Department. Permits were at 1.241 million which is lower than the month before by .6%. Permits are also lower by 1% from a year ago.
Permits are a leading indicator thus giving us a glimpse of future construction of homes and though it is not signaling a crash or even a significant fall it is in a downward trend. The housing industry is likely to not add any significant boost to the GDP of our economy for the rest of this year and into next.
What was interesting is that builders were a bit more positive than they were a month ago and cite a strong economy and very low unemployment as a tail wind for their industry.