Building Permits Surge

Building Permits Surge

Building permits rose to 653,000 in October. A 10.9% increase from September and 17.7% higher than October 2010. This is the largest number of permits for 2011 and represents the most since March 2010.

The building permits report is used as a guide to gauge future signs of construction. Housing construction is significant in that builders generally don't start a house unless they are fairly certain it will sell upon its completion, if not before. Increased building permits, and then a subsequent increase in housing starts can tell a lot about home demand and construction outlook.