HOUSING STARTS, PERMITS ON THE RISE …
|| By FITSNEWS || We were thrilled to see some good economic news this week … at least for a minute.
Housing starts surged 20.2 percent in April to 1.135 million, according to data from the U.S. Department of Commerce. That’s the second-biggest month-to-month increase ever – sending this volatile economic indicator to its highest level since November 2007. Meanwhile there was a 10.1 percent hike in applications for building permits – sending that measure to its highest level since June 2008.
Six years ago, during the brunt of the “Great Recession,” housing starts plunged all the way to 478,000. By contrast, January 2006 saw a whopping 2.273 million housing starts.
So … this is good news, right?
Yes. Better than bad news obviously. In fact after a dismal first quarter, it’s nice to see anything resembling positive data.
But before we get all “rainbows and unicorns” about the economy, it’s important to remember just how weak America’s economic fundamentals remain. And how pessimistic the immediate outlook remains.
It’s also important to note a jump in housing starts doesn’t always bode well …
(Click to enlarge)
(Chart: Via Zero Hedge)
Real economic growth will not materialize until that consumer has disposable income. Which will not materialize until there is real job and income growth. Which will not materialize as long as government is subsidizing entitlement perpetuation, wealth redistribution, crony capitalism, welfare statism and global interventionism.
Oh, and socialized medicine.