15 April 2008 18:35 [Source: ICIS news]
The National Association of Home Builders (NAHB) said that the continuing housing slump and resulting “serious erosion of consumer sentiment” have pushed the $14,000bn (€8,820bn)
The home builders also have pushed back their outlook for a housing sector recovery, saying the downturn in new residential construction is not expected to hit bottom until early 2009 at best.
Previously, NAHB chief economist David Seiders had been predicting that the two-year decline new home construction would bottom out in the third quarter this year.
The residential construction market is a crucial downstream consuming sector for the
“It is now clear that we have entered what we anticipate will be a mild recession, running through the first half of this year,” Seiders said.
In addition, he added, “there are substantial downside risks to this economic scenario”.
Seiders said that unless Congress moves quickly to further stimulate home building and the broader
The NAHB economist said he expects continuing downward movement in housing starts - the key measure of new home construction - through the end of this year. By year end, he said, the
NAHB called on Congress to do more to help steady the housing industry and enable a recovery by providing a temporary home buyer tax credit.
“Stopping the downward trend in housing prices is key to bolstering consumer confidence as well as mortgage credit quality, and a temporary home buyer tax credit is the best way to do that,” Seiders said.
($1 = €.63)
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.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|