Measures the number of residential units which construction is about to start on. The backbone of the American Economy is based on construction. Think about this when one purchases new home, durable good items like refrigerators, washers and dryers, furniture, and lawn care products may be purchased, right? This is known as a ripple effect throughout the economy. Think of all the jobs produced from construction to factory and transportation and even communication and technology that go into the building and financing and furnishing a new home. The economic commerce is substantial. Especially when there are a hundred thousand or more homes built in a month around the country. At the very least the data from housing starts can help project the price direction for the sector of stocks in homebuilders, mortgage banks, and appliance companies. It used to be that lumber and copper futures prices were dramatically affected by the Housing Starts figure. However, since the development of pre-fab and new construction materials especially fibre optics and plastics (PVC is used for plumbing rather than copper) these products are now less sensitive to the building industries trends.