Thanks to an upswing in the building of multi-family structures, the construction slump may be over. If the trend continues, the industry may never be the same.

The long downward slide in housing construction may be coming to an end. While the rate of new building remains below pre-recession levels, data for the past year show a sustained—if slow—upward trend in new housing permits. But a closer look reveals a changed market.

Some areas of the economy are gaining strength. But the labor market lags behind increased productivity.

Production in the U.S. economy finally returned to pre-recession levels in the third quarter of 2011. The economy is now producing the same amount of goods and services as it did in 2007. But it is doing so with 6.3 million fewer workers.

Unemployment and slow growth of consumer spending are holding back the recovery. Lingering problems in Europe may add to the burden.

The recovery that started 30 months ago is proceeding, albeit slowly. AIER’s statistical indicators of business-cycle conditions show signs of strength in business activity, but also lingering difficulties faced by consumers. And the developing problem in Europe may further slow the recovery.

GDP growth is close to the long-term trend. But the driving economic engine created by consumer spending could run out of juice.

Despite persistently high unemployment and worries over the domestic impact of the global economic situation, the American economy posted a robust growth in the third quarter of 2011. In addition, AIER’s statistical indicators of business-cycle conditions signal that the expansion will continue in the near future.