20 November 2012 18:16 [Source: ICIS news]
HOUSTON (ICIS)--US home building increased by 3.6% in October from September, the US Department of Commerce said on Tuesday.
The monthly report released by the department showed that housing starts in October were at a seasonally adjusted rate of 894,000, a gain from September’s revised estimate of 863,000. October’s rate was also a 41.9% increase from last year’s 630,000.
Single-family home production in October declined by 0.2% month on month, but multi-family housing starts increased by 10%.
While home building rose for the third consecutive month, housing permits issued last month fell by 2.7% from September’s rate of 890,000.
A downturn in building permits indicates actual housing starts may show weakening numbers when the November data on residential construction are issued in December.
The housing market is a key downstream consumer sector for the chemicals industry, driving demand for a wide variety of chemicals, resins and derivatives such as plastic pipe, insulation, paints and coatings, adhesives, roofing materials and synthetic fibres.
The American Chemistry Council (ACC) estimates that each new home built represents some $15,000 (€11,700) worth of chemicals and derivatives used in the structure or in production of component materials.
($1 = €0.78)
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