Building permits sag again in August

Privately-owned housing units authorized by building permits in August dropped to 1,394,000, -2.7% below the revised July rate of 1,433,000, + 3.5% above the August 2025 rate of 1,347,000. The Census Bureau said single-family permits in August were at a rate of 878,000, -1.8% below the revised July figure of 894,000.
NAHB builders less confident about September market conditions. Higher mortgage rates, worsening labor shortages and rising material costs are weighing on builder sentiment, according to  the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI).

NAHB said builder confidence in the market for newly built single-family homes fell three points to 32 in September

“The HMI shows builder confidence at its lowest level since Sept. 2025, as tight lending conditions and elevated land, labor and construction costs persist,” said NAHB Chief Economist Robert Dietz in  the press release.
The latest HMI survey found that 38% of builders cut prices in September, up from 35% in August. The average price cut remained at 6% for the sixth consecutive month. Meanwhile, 66% of builders reported using sales incentives in September, up from +63% in August.

Leading indicators show slight decrease

The Conference Board Leading Economic Index (LEI) for the United States decreased by -0.1% in August 2026 to 99.5 points (2016=100), after an increase of +0.2% in July. As a result, the LEI’s six-month growth was –0.1% between February and August 2026, a much smaller rate of decline compared to –0.6% over the previous six months.
“The US LEI receded slightly in August, the first monthly decline since March of this year,” said Justyna Zabinska-La Monica, senior manager, Business Cycle Indicators, at The Conference Board, in the press release. “Due to the latest decline, the LEI’s six-month growth rate turned back to slightly negative, suggesting a less certain economic environment ahead. The economy is still expanding, but growth is expected to slow. The Conference Board forecasts real GDP to increase at a 1.9% rate in 2026, with our outlook for 2027 downwardly revised from 1.9% to 1.8%.”