MetroIntelligence Economic Update by P. DUFFY
June housing starts rise 17.3 percent, but down 4.0 percent year-on-year
Privately-owned housing starts in June were at a seasonally adjusted annual rate of 1,186,000. This is 17.3 percent (above the revised May estimate of 1,011,000, but is 4.0 percent below the June 2019 rate of 1,235,000.
June building permits up 2.1 percent, but down 2.5 percent year-on-year
Privately-owned housing units authorized by building permits in June were at a seasonally adjusted annual rate of 1,241,000. This is 2.1 percent above the revised May rate of 1,216,000, but is 2.5 percent below the June 2019 rate of 1,273,000.
Consumer sentiment gives up recent gains, falling 6.5 percent to 73.2
Consumer sentiment retreated in the first half of July, falling 6.5 percent to 73.2 due to the widespread resurgence of the coronavirus. The promising gain recorded in June was reversed, leaving the Sentiment Index in early July insignificantly above the April low (+1.4 points).
Remodelers remained optimistic in 2Q 2020, with confidence index of 73
The National Association of Home Builders (NAHB) released its Remodeling Market Index (RMI) in the second quarter of 2020, posting a reading of 73. The Current Conditions Index averaged 77, the Future Indicators Index averaged 70, the rate at which leads and inquiries are coming in was 72 and the backlog of remodeling jobs was at 67. This is the second quarter with a new RMI, redesigned to ease respondent burden and improve its ability to interpret and track industry trends. The new series is not seasonally adjusted, therefore index readings cannot be compared quarter to quarter.