Volumes of new-homes construction in the US grew more than was forecasted and showed the largest level in three months, Bloomberg reports. At the same time number of permits fell by the most since February 2017. All these indicates that construction sector is struggling to stabilize.

New residential construction gained 9,2%. Number of permits, which is an indicator for perspective building, fell by 5,7%.

As a result, from one side housing market shows signs of recovery after two months of slump, but from the other side further perspectives are not very optimistic. While strong labor market and lower taxes stimulate demand, higher property prices and interest rates create troubles for buyers. As of construction, the companies faced with higher costs for personnel and import of steel.