US home building and permits decline in July

16 August 2007 15:41  [Source: ICIS news]

MUMBAI (ICIS news)--US new home construction fell 6.1% in July compared with a rise of 2.3% in June, the Commerce Department said on Thursday, but a decline in building permits suggests the housing downturn may continue.

The department said privately owned housing starts in July were at a seasonally adjusted annual rate of 1.38m units, 6.1% below the revised June estimate of 1.47m units and a whopping 20.9% below the revised July 2006 rate of 1.75m units.

An estimated 1.37m building permits were issued across the country in July on a seasonally adjusted and annualised basis, which is 2.8% below the revised June rate.

July building permits are still nearly 23% below the rate seen in July last year when about 1.77m permits were filed, suggesting the sector still has a long way to go before it recovers.

The housing market is a key downstream consumer sector for the chemicals industry, driving demand for a wide variety of chemicals and chemicals-based products such as plastic pipes, insulation, paints and coatings, adhesives and synthetic fibres.

Building permits are filed with locals governments by contractors when they are ready to begin work and consequently are seen as a good near-term indicator of sector activity.

US housing starts, July ‘07

	July ’07*	June ’07*	July-June ’07	July ’06*	July ’06 to July ’07
US housing starts	1.381m	1.470m	-6.1%	1.746m	-20.9

*seasonally adjusted and annualised

By: Isha Jha
+65 6780 4359

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly