Showing posts with label Building Permits. Show all posts
Showing posts with label Building Permits. Show all posts

Saturday, November 14, 2009

Building permits and U.S. GDP growth

The highest correlation that can be found between building permits and subsequent year-over-year GDP growth is 0.64:



(Note: This is a 15-months rate of change, and Building Permits are advanced 6 months.)

This illustrates one of the missing private demand leg in this recovery.