U.S. Builders Pause, Buyers Wait: Data Shows Economy in Holding Pattern
Data from the US Census Bureau, S&P Global, and the Federal Reserve shows that in July 2025, the US economy moved steadily but showed little sign of fast growth.
Builders received permits for 1.39 million new homes in June—a slight monthly rise, but 4.4% below last year’s pace. Most of this new construction happened in the South and Midwest. Single-family permits, a key measure for family housing, fell by 3.7%.
Hiring also held up, but just barely. New jobless claims dropped to 217,000—a small improvement—and almost 2 million Americans kept collecting unemployment benefits, suggesting companies are not cutting more workers, but they are not hiring much either.
Manufacturers faced a drop in demand. The S&P Global Manufacturing PMI fell to 49.5, which signals contraction. Companies said new orders and production slowed.
In contrast, service businesses grew, with the S&P Global Services PMI rising to 55.2. This reveal Americans spent more on things like travel, dining, and healthcare, but factories struggled with weaker orders.
The housing market showed small gains. Builders sold 627,000 new homes in June, barely topping May’s figure. Existing home sales slid by 2.7%, reaching an annual rate of just under 4 million.
Still, the average existing home price set a June record at $435,300—making it even harder for buyers as mortgage rates remained high.
The Federal Reserve kept reducing its balance sheet, now down to $6.66 trillion, pulling liquidity out of the system to keep inflation under control.
Underneath the numbers, the story is one of caution. Businesses spent carefully, focused on services, and trimmed expenses in manufacturing. Homebuyers faced high prices and tough borrowing costs.
People kept their jobs, but hiring slowed, and companies hesitated to invest in major expansions. Stability has replaced the wild swings of earlier years.
The US economy holds steady, but both businesses and families seem to be waiting for clearer signs before making big moves. The numbers confirm a business climate that values careful planning more than risk, and steady hands over fast decisions.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief