NAHB Home Builder Sentiment Index in United States

The Sentiment Index Builders is based on a monthly survey by the National Association of Home Builders. The survey deals with the conditions of home sales of new construction at present and in the next six months; in addition to the flow of potential buyers of new homes.

It is calculated using ratings builders, in the case of market conditions for the sale of homes now and in the next six months should be assessed as "good," "fair" and "poor"; while the flow of potential buyers of new homes valued as "high / very high", "medium" and "low / very low". an index for each series in the first two cases the rate is calculated by the following formula "(Good-bad 100) / 2" and for the flow of potential buyers "(High / high-low / very low 100 is calculated )/2". Each index is seasonally adjusted and added to produce the overall index.

The evolution of this indicator reflects the level of confidence of US manufacturers regarding the general economic situation also reflects the evolution of the construction sector, a sector with a major impact on the local economy in terms of employment, income, industries associated secondary sector, among others. The equilibrium level is 50 points above is considered an optimistic assessment and below said reading will pesmista.

Like any survey, it is subject to estimation error of the selected sample, as the error of the variability of the results. Nor it is free from any errors in the data processing itself.