Housing looks terrible

via @GS_CapSF:

Housing looks like shit. Permits, starts, housing under construction all declining YoY. The weather related snap back lasted one month. Builders not breaking ground even after permitted show lacks of confidence in ability to sell. Number of sales falling off a cliff.

Construction as a percentage of GDP isn’t huge but has a large multiplier effect due to a large number of inputs from other industries (timber, tools, finance, services, etc.). Employment growth in construction is slowing and will soon follow.