22 July 2011 19:46 [Source: ICIS news]
WASHINGTON (ICIS)--More than half of US consumers now think that buying a home is a bad family investment, a new survey reported on Friday, a finding that bodes ill for the nation’s long-depressed housing sector and supplier industries such as chemicals.
That survey, conducted in mid-July, showed that consumer confidence in the housing market has fallen to an all-time low.
The same survey conducted in June showed that only 47% of polled adults believed that buying a family home is a good investment.
That 43% low-point is well below the pre-recession high of 73% and down considerably from the 60% confidence measure that was recorded as recently as September 2010, Rasmussen said.
“These findings come at a time when confidence that home values will improve has fallen to the lowest level ever recorded,” the survey firm said.
“For the second month in a row, less than half of ?xml:namespace>
If public confidence in home ownership as an investment stays at such low levels, the long-struggling
That would be bad news for the home construction sector and for a wide variety of supplier industries.
The housing market is a key downstream consumer sector for the chemicals industry, driving demand for a wide variety of chemicals, resins and derivative products such as plastic pipe, insulation, paints and coatings, adhesives and synthetic fibres, among many others.
The American Chemistry Council (ACC) estimates that each new home built represents some $16,000 (€11,200) worth of chemicals and derivatives used in the structure or in production of component materials.
The Rasmussen survey followed a report that US existing home sales fell in June and that continuing tight credit conditions are hampering hopes for a housing recovery.
US Federal Reserve Board chairman Ben Bernanke recently expressed worries that the economic recovery could falter.
($1 = €0.70)
Paul Hodges studies key influencers shaping the chemical industry in Chemicals and the Economy
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