Homebuilder confidence and GDP / by urbanexus

Joe Wiesenthal reported on November 19, 2012, at Business Insider  that the big economic datapoint of the day is homebuilder sentiment. This National Association of Homebuilders (NAHB) index is at its highest level since 2006. The chart below compares the NAHB Hombebuilder Sentiment index with the share of gross development product (GDP) attributed residential construction (with a 12-month lag). This surge in positive sentiment could foreshadow a significant increase in economic activity n the USA.