The economy and the construction are showing a split personality. Homebuilding continues to carry on as if there was no recession last year and no slowdown this summer. Consumers skipped the recession but are looking more cautious now, while the rest of the economy is acting as if it is heading for a double dip. Each of these trends has implications for different types of construction.
Let's start with the best news. The government reported Friday that building permits, the best indicator of future home construction activity, held almost steady in July at a seasonally adjusted annual rate 1.7 million. That figure was just 0.5% below June's revised total and a strong 6% higher than a year ago. Historically, about 99% of permits are converted into actual starts, generally within a month or two.