Jan. 2010 Housing Permits

Housing permits are a key leading indictor for construction machinery industrial production. According to the U.S. Census Bureau, housing permits in January 2010 were 39,400, an increase of 8.5% compared to January 2009. This marks the third straight month that permits have increased month on month. This is after seeing month on month permits decline by double digits for 41 consecutive months. However, as you can see on the chart below, permits are still hovering near their lowest level in the last 40 years and more than 80% below the peak level of permits in 2005. Housing permits falling to this low level is not uncommon. What is uncommon is the lengthy boom period throughout the 1990s and early 2000s.

 

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