Home construction fell sharply in July, while equipment, electronics and aerospace manufacturing provided some encouraging signs.
Housing construction by region
| Region | Housing starts | Single-family starts | Building permits |
|---|---|---|---|
| Northeast | 🟢 +17.1% | 🔴 −27.1% | 🔴 −2.6% |
| Midwest | 🔴 −27.6% | 🔴 −5.0% | 🟢 +12.3% |
| South | 🔴 −12.6% | 🔴 −4.9% | 🟢 +6.6% |
| West | 🔴 −13.8% | 🔴 −21.6% | 🟢 +0.3% |
| United States | 🔴 −12.4% | 🔴 −9.9% | 🟢 +5.0% |
Home construction moved in the wrong direction in July. Fewer homes entering the market will not make it easier for young and first-time buyers already facing high prices and expensive mortgages. The Midwest’s permit increase offers hope for a rebound, but the region first has a deep construction decline to overcome.
Where industrial production increased
| Area of production | July change | Change from July 2025 |
| Computer and electronic products | +1.9% | +9.9% |
| Defense and space equipment | +1.8% | +6.8% |
| Aerospace and transportation equipment | +1.4% | +4.5% |
| Primary metals | +1.4% | +1.6% |
| Electrical equipment and components | +1.3% | +6.2% |
| Fabricated metal products | +1.2% | +2.8% |
| Machinery | +0.8% | +4.4% |
| Construction supplies | +0.8% | +2.4% |
The overall industrial increase was only 0.2%, but the stronger categories show that companies are still purchasing and producing equipment, electronics, machinery and industrial components.
There are reasons to look ahead with some optimism. Building permits rose nationally, including strong increases in the Midwest and South, keeping future housing projects in the pipeline even though construction is weak today. Meanwhile, new investments in American vehicle, battery and equipment production—including factories preparing for the Slate truck and Ford’s affordable electric pickup—could begin appearing more clearly in industrial reports over the coming year. Today’s numbers are not a turnaround, but they show that plans for tomorrow have not stopped.
Resources:
U.S. Census Bureau: July Housing Construction
Federal Reserve: July Industrial Production
Regional housing estimates can vary considerably from month to month. Building permits indicate planned construction but do not guarantee that every project will be built.
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