US housing

Housing starts, a leading indicator of economic activity, have been on a steady upward trend in America. In July the number of privately-owned housing starts rose to 1.21m at an annual rate, the highest since October 2007 according to the US Census Bureau. Single-family housing starts, which account for 65% of the market, increased by 13% on the previous month to 782,000. Although permits for new buildings were lower than in June, they remain 7.5% higher than a year earlier. In other signs that America’s housing market has come back to life, the National Association of Home Builders’ sentiment index rose in August to its highest level in almost a decade, supported by a tightening labour market.