Regionally, the largest declines were seen in the Northeast and Midwest, followed by the West. The Southern region was flat in March. Permits are used to predict future activity.
Housing starts is important because it is a leading indicator.
Sustained declines in housing starts slow the economy and can push it into a recession. Likewise, increases in housing activity triggers economic growth. Building permit data is released at the same time as housing starts. Permit activity provides insight into housing and overall economic activity in upcoming months. It is so important that it is included in the index of leading economic indicators.