US Construction Sector Hits Five-Year Low
- brg_news_room
- Aug 21
- 1 min read
UNITED STATES: The US construction sector is showing new signs of weakness, with building permits—the key leading indicator of future construction—falling for four consecutive months to their lowest level in five years. While housing starts rose 5.2% in June following a 5.9% increase the prior month, the overall trend reflects ongoing pressure from high interest rates. The housing market turned downward in 2022 almost in step with the Federal Reserve’s rate hike cycle, and despite rate cuts at the end of last year, the slowdown has persisted into 2025.
Price pressure is also becoming evident in new home sales. The median price of a new home in June was $401,800, the lowest in four years apart from a brief dip to $397,600 in November 2024. This marks a 6.5% decline from the peak, which still compares mildly to the 15% price fall that preceded the 2008 global financial crisis. Since Americans often borrow against home values, the continued slide in sales and prices is a warning signal. While there remains some room for adjustment, analysts caution that the situation warrants close monitoring as the construction sector struggles to regain momentum.
Source: FXStreet
