July 16, 2014 at 10:09 am

US homebuilder confidence surges in July

U.S. homebuilders are feeling more confident in their sales prospects for the second half of the year, reflecting improved demand and stronger sales of new homes in recent months.

The brighter sales outlook suggests home construction could pick up in coming months after a sluggish start this year.

The National Association of Home Builders/Wells Fargo builder sentiment index rose this month to 53, up four points from a revised reading of 49 in June.

The latest reading is the highest since January, when it was 56.

Readings above 50 indicate more builders view sales conditions as good, rather than poor.

Builders’ view of current sales conditions for single-family homes, their outlook for sales over the next six months and traffic by prospective buyers each increased since June.