A new report from the U.S. Commerce Department shows new home construction declined in May, but permits for future projects could indicate a period of growth is right around the corner.
Total housing starts dropped 4.8 percent for May, yet some aspects of the report were quite positive for the construction industry. The 708,000 annual rate for housing starts was down compared to April, but up more than 20 percent compared to the previous year, according to MarketWatch.
In addition, housing starts of single-family homes actually reached the highest point this year, with a 516,000 annual rate and a 3.2 percent increase over April. It was ultimately a sharp decrease in apartment construction that dragged the overall numbers down.
"Not much seems to be going right for the economy these days, but housing appears to be a rare bright spot," Stephen Stanley, chief economist of Pierpont Securities, told the news source.
The future appears bright as well, thanks to a surge in the number of approved construction permits. The permit figure rose nearly 8 percent to an annual rate of 780,000. Most economists consider permits to be a strong indicator of future construction in the months ahead, so the summer figures will likely rise compared to May.
Contractors may be struggling to find work right now, but business owners need to be well prepared once they do find a project. The online auction site IronPlanet offers a wide variety of used construction equipment, often at more affordable prices than buying new. In addition, all equipment on the site is backed by IronClad Assurance, which allows buyers to view full inspection reports before they bid.
