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Supply chain professionals get economic update this week

According to IHS Global Insight, The single-family housing market remains stuck at the bottom, while the multi-family market is slowly getting back on track
By Patrick Burnson, Executive Editor
October 24, 2011 - SCMR Editorial

Housing was in the limelight this past week, and the story is unchanged.

According to IHS Global Insight, The single-family housing market remains stuck at the bottom, while the multi-family market is slowly getting back on track.

Economists report that with nine months of data, 2011 is shaping up to be the worst year on record for single-family housing starts, single-family permits, and existing home sales. New home sales, which come out this week, will also set a record low in 2011. Still, September was a banner month for housing starts, which climbed to their highest level in 17 months on a whopping 51 percent jump in the improving multi-family market.

IHS said the highlight in the very busy upcoming week will be the advance GDP release, which will show the economy growing at its fastest pace in the third quarter of 2011 since the second quarter of 2010.

The two most important measures of consumer confidence, the Conference Board’s consumer confidence index and Reuters/University of Michigan’s consumer sentiment index will show confidence and sentiment at recessionary levels in October.

Despite the gloom, IHS is projecting that the personal income and outlays release will show that real consumer spending increased modestly in September and during the third quarter. The new home sales release for September will show sales still on track for a record low year.

Finally, said economists, durable goods orders will be down in September on a drop in aircraft orders, while the employment cost index will show that wage pressures in the third quarter “remained subdued.”



About the Author

image
Patrick Burnson
Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).

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