Construction still weak spot in US economy – Federal Reserve
28 April 2010 20:45 [Source: ICIS news]
HOUSTON (ICIS news)--The construction sector remains a weak spot in the US economy despite an overall improving picture, while small gains in housing starts are from a low base, the policy-making committee of the US Federal Reserve Board said on Wednesday.
"Business spending on equipment and software has risen significantly; however, investment in non-residential structures is declining and employers remain reluctant to add to payrolls," the central bank's Federal Open Market Committee said in a statement.
"Housing starts have edged up but remain at a depressed level," it noted.
Residential and non-residential construction are key downstream demand sectors for a range of chemicals, including polymers, solvents and adhesives, paints, and other construction materials.
The American Chemistry Council (ACC) has estimated that each new home built represented around $16,000 (€12,160) worth of chemicals and derivatives used in the structure or in production of component materials.
The US housing market sprang back to life in March, but analysts cautioned that particularly harsh winter weather in January and February, as well as a tax credit that applied to home purchases before 31 March, helped artificially inflate the sector.
($1 = €0.76)
To discuss issues facing the chemical industry go to ICIS connect
Paul Hodges studies key influencers shaping the chemical industry in Chemicals and the Economy
By: Stephen Burns
+1 713 525 2653
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 |
Related Articles
- 23 Jun 10 16:40 US new home sales plummet 32.7% in May, shaking market
- 22 Jun 10 17:17 US existing home sales dip 2.2% in May as tax credit expires
- 16 Jun 10 14:49 US home construction nose-dives in May, down by 10%
- 03 Jun 10 16:33 US Rockwood sees first improvement in construction markets
- 26 May 10 19:56 US new home sales jump 15% in April on tax credit
- 24 May 10 18:45 US home sales rise 7.6% in April but a new fall is forecast
- 20 May 10 18:25 INSIGHT: US housing recovery to advance - maybe
- 18 May 10 22:15 US housing sector recovery to continue through 2011
- 18 May 10 14:51 US new home construction rises 5.8% in April
- 17 May 10 19:29 US home builders grow more confident of recovery
- 14 May 10 12:46 APIC ’10: India's demand for emulsions, adhesives to grow 10-12%
- 04 May 10 17:23 March US chemical shipments jump 10% year over year
- 29 Apr 10 18:10 US weekly chemical railcar traffic increases 13.1%
- 29 Apr 10 13:16 OxyChem Q1 profit plunge 82% to $30m on weak US housing market
- 28 Apr 10 19:38 Consumers, autos fuel global economic recovery - Dow CEO
- 23 Apr 10 19:03 US new home sales shoot up by nearly 27% in March
- 22 Apr 10 18:26 US existing home sales shoot up by nearly 7% in March
- 16 Apr 10 14:35 US housing starts rise in March but only for apartments
- 14 Apr 10 20:41 US economy in recovery but still restrained - US Fed
Latest News
- 19 Jun 13 13:11 Indian Jolly Containers expanding PP copolymer conversion units
- 19 Jun 13 13:00 VIDEO: ICIS Europe Lunchtime Bulletin 19 June 2013
- 19 Jun 13 12:50 EU Q1 ethylene oxide exports up by 2% year on year
- 19 Jun 13 12:43 Europe LLDPE imports down in March: Eurostat
- 19 Jun 13 12:42 Europe nylon exports decrease by 23% in March