The index (volume) of construction of new houses is a quantitative indicator of the number of new buildings with a laid foundation for the reporting period. The indicator is tracked by state statistics during the month, quarter and year, as one of the key factors reflecting the economic state of the country.
Depending on the country, the data is published in economic calendar in figures showing the number or percentage of changes to the previous period.
Features of calculation and publication of the index of new home construction in the USA
In the United States, the Census Bureau is engaged in the calculation of new buildings, the data is processed monthly on the basis of reports on foundation laying from the construction supervision authorities.
The data is released before the opening of the stock markets of America at 8-30 in New York, after the first 17 days of each month.
The impact of the US real estate market on the rest of the world was fully reflected during the mortgage crisis of 2008. Artificial stimulation of the construction boom by issuing unsecured loans disrupted cash flows, causing a chain reaction of non-payments and a significant decrease in liquidity. In less than a month, stock markets collapsed, gold, oil, significantly strengthened the US dollar and the currencies of a number of developing countries have depreciated.
The impact of data on the number (volume) of new buildings on the Forex market
The start of construction, as well as the number of permits received, can be ignored by bidders in the short term, if the markets are not in a period of crisis phenomena or a strong economic recovery.
The data serve as a guide for medium-and long-term positions of investors as a leading indicator of employment growth or an additional filter confirming the positive dynamics in the economy. The drop in the index indicates a widespread economic crisis – this is a signal to switch to conservative strategies for investors and a reminder to speculators about the high wave volatility, which will soon affect all assets, including currencies.
The Forex market is particularly influenced by the number of new buildings in the United States, The euro area, there is a volume of construction of new homes, as in the UK. Statistics Canada counts the foundations laid in the same way as the US Census Bureau.