New Construction Starts In Birmingham MSA

The chart here shows the new construction starts for the Birmingham, Alabama MSA and a month to month percentage change. I believe that new starts can be an indicator of market perception. For instance if developers are increasing new projects one would believe that there is good faith that the marketplace will absorb his or her products. If new projects are down, then one could derive a lack of confidence in the marketplace. Notice in February and March of 2008 positive growth in new construction starts was present followed by a decline for four months.