WHAT ARE THE "BUILDING PERMITS"?

WHAT ARE THE "BUILDING PERMITS"?

Building Permits is an indicator used to measure current data on new residential constructions and additions, alterations and renovations to existing residential buildings. The Building Permits Survey produces estimates of the number of permits issued for new housing units each month. This is done through a mail survey of major metropolitan cities within the US, as well as selected rural areas according to guidelines set forth by the Census Bureau. Building Permits provide an accurate estimate of construction on future projects, as the requesting of a Building Permit is the first step to the construction of any new residential structure. The monthly data is considered an accurate estimate of Building Permits nationwide. Building Permits data is used by the Federal Reserve Board to economic conditions both regionally and nationally.
It's an excellent gauge of future construction activity because obtaining a permit is among the first steps in constructing a new building