Source U.S. Census Bureau, U.S. Department of Housing and Urban Development
The index represents the number of opening construction projectslaying of the foundation for the future objects.
Even though the index is a monthly calculated data, its value is presented in annual format (x12).
It is one of the most important indicators of the national economy health, since house building growth initiates a strong ripple effect, such as creating new jobs for construction workers, associate contractors along with increasing demand for various construction services.
Effect of market
The index importance is slightly decreasing on the back of the simultaneous publication of building permits statistics which is a better operativehouse building industry situation indicator (laying on the new foundation takes place after obtaining the permit).
The index growth or the actual value rise, exceeding the forecast, the index growth may have both positive and negative effect for the Dollar, depending on the market situation.