Construction industry provides information on construction output and activity. Such information gives an insight into the supply on the housing and construction market.
Rising number of new construction starts or value of construction completed reflects higher consumer and business optimism. Expanding construction indicates growth in the housing market and predicts an increase in the overall economy. However, an excessive supply of new buildings may result in a drop in housing prices.
The construction industry is one of the first to go into a recession when the economy declines but also to recover as conditions improve.