The housing market and the concrete industry are inextricably linked. As we mentioned in a previous blog post, the home building market is showing promising signs of recovery.
Today Bloomberg News reported further good news for ready mix producers: the pace of home construction reached a more than 5 year high in November 2013. “Housing starts jumped 22.7 percent to a 1.09 million annualized rate, exceeding all forecasts of economists surveyed by Bloomberg and the most since February 2008, the Commerce Department reported today in Washington.”
The Commerce Department report also included delayed data from September and October, due to the government shutdown earlier this year. November permits fell 3.1 percent from October’s high of 1.04 million permit level. However, the continued level of building activity suggests that the housing start pickup will continue into 2014.
The report painted a particularly encouraging picture for our region of the country. The South showed a 38.5 percent jump in ground-breaking last month; the biggest increase in the region since July 1982.
All signs point to a continued economic improvement in 2014; here’s to a happier new year!