Housing woes lower US Feb construction spending

01 April 2008 18:22  [Source: ICIS news]

HOUSTON (ICIS news)--US construction spending in February fell by 0.3% from January and 3.4% from the same time last year, as the nation's housing market continues to languish in a prolonged slump, a federal agency said on Tuesday.

Total public and private construction reached $1,122bn (€707bn), compared with $1,125bn in January and $1,162bn in February 2007, according to the US Department of Commerce.

Housing construction caused much of the decline, according to the Census Bureau. Residential construction was $463.8bn in February, down from $468bn in January and down from $569.5bn in February 2007.

The housing decline was partly offset by increases in nonresidential construction, according to the bureau. Nonresidential spending in February was $657.8bn, compared with $656.8bn in January and $592.7bn in February 2007.

The housing industry is a key downstream consuming sector for chemicals and chemicals-based products such as roofing materials, adhesives, insulation, siding, paints and coatings, synthetic materials, polyvinyl chloride (PVC) pipes and a broad range of other construction materials.

Each house has an average of $16,000 (€10,080) in chemistry, according to the American Chemistry Council (ACC).


Dollar value (billions)

% change from Jan

% change from Feb 07

Total construction

1,122.2

-0.3

-3.4

Residential

463.8

-0.9

-18.6

Nonresidential

657.8

0.2

11.0

For more on PVC visit ICIS chemical intelligence

($1 = €0.63)


By: Al Greenwood
+1 713 525 2645



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