US Housing Hits 2-Year Low as AI Boom Drives Factory Output to 4-Year High
US housing starts dropped to their lowest level since November 2022 in July, while existing home purchase contracts fell to their weakest point since January. Elevated borrowing costs and tight housing inventory have continued to squeeze affordability and dampen sales activity. In contrast, American factory output climbed to its highest level in more than four years during the same period. This manufacturing surge was largely fueled by robust investment in artificial intelligence and its associated industries. The diverging trends highlight how AI-driven industrial growth is reshaping the broader US economic landscape.
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