Building permits show signs of recovery, but still in negative territory

Published 18/06/2025, 13:34
Building permits show signs of recovery, but still in negative territory

The latest data on Building Permits, a critical economic indicator closely watched by economists and investors, has been released, revealing a slight improvement but still falling short of expectations.

The actual number for Building Permits came in at -2.0%, demonstrating a modest recovery from the previous figure. This report, which reflects the number of new building permits issued, is a key indicator of economic health as it reflects the level of construction activity, which in turn influences sectors such as financing and employment.

However, despite the improvement, the actual number still underperformed compared to the forecasted figure. Economists and investors had anticipated a stronger recovery, underscoring the ongoing challenges facing the construction sector and the broader economy.

Compared to the previous figure of -4.0%, the latest data indicates a positive trend, with the decline in Building Permits slowing. This suggests that the construction sector may be beginning to stabilize after a period of contraction, potentially signaling a broader economic recovery.

Nonetheless, the fact that the actual number of Building Permits remains in negative territory is a cause for concern. A negative figure indicates that fewer new building permits were issued compared to the previous period, pointing to a slowdown in construction activity. This could have wider implications for the economy, given the importance of the construction sector to overall economic activity.

The Building Permits report is considered a leading indicator of the state of the economy, as it provides insights into future construction activity. A higher than expected number is typically seen as positive for the USD, while a lower than expected number is viewed as negative. In this case, the lower than expected figure could exert downward pressure on the USD.

Overall, while the latest Building Permits data shows signs of improvement, the continued negative figure suggests that the construction sector and the broader economy still face significant headwinds.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.