US new builds and permits jump in August
Predicted slump in US construction industry fails to materialise
After a disappointing start to the year, the US construction industry has noted a 10% rise in the number of new builds underway, and a significant jump in building permit applications.
Figures released by the U.S. Department of Commerce this week showed that 598,000 new buildings were under construction across the country. The figure consists mostly of new apartment and condominium buildings, not single-family homes, however.
Building permit applications increased by 2% last month, indicating that contractors had many more projects in the pipeline.
Earlier this year, the situation looked bleak. A drop in construction spending for July wiped out any gains the industry had made earlier in the year with analysts recording an 11% drop in construction spending in the year ending July 31. Government funded projects suffering the most.
Analysts also predicted a slump in construction projects as the government’s homebuyer tax credit stimulus incentive, targeted at new builds, came to an end. However, that slump has not yet materialised.