Number of new homes in the us on the up

The number of new homes constructed in the USA is on the up, according to new figures.

The amount spent on building new US property jumped by 0.9 per cent in August, the Commerce Department revealed, reaching an annual total of $235.5 billion - that's 18 per cent more than last year.

Spending on building new homes has now increased for five months in a row, adding to the list of positive signs of the US housing market recovery. Indeed, spending on apartment construction has rise for 10 months in a row.

Confidence of homebuilders is on the up as well, with new build homes now accounting for 20 per cent of the US housing market - a crucial key to the country's economy and employment.

Paul Dales, senior economist for Capital Economist, told the Associated Press: "[This] provides more evidence that the housing recovery is gathering pace. Unfortunately, the housing sector is not large enough to set the overall economy alight."