New York – Recent economic indicators point to an easier time for small builders and companies in the home reconstruction industry.
According to researchers at Harvard University’s Joint Center for Housing Studies, a collapse in the home repair and remodeling market, which began in the first quarter of 2019, is expected to end with the third quarter of this year. The
Researchers consider a number of economic indicators to reach their predictions, including the sale of existing homes, the start of new housing and the sale of building materials. Homeowners tend to make repairs and repairs before or after buying or selling a home, even if they are buying a newly built home. And many companies that do home remodeling and repairs are small businesses or general contractors who work alone.
Although new home sales have weakened – they fell 1.7% in November, according to the National Association of Realtors – builders are building more single-family homes. The Commerce Department said housing began to rise by 13.6% in November compared to a year earlier, and the number of building permits issued increased by 11.1%.
Meanwhile, a monthly report from the Institute for Supply Management points to a possible end to the fall in production that has brought industry activity to its lowest level since the official end of the Great Recession in June 2009. Purchasing officials said its manufacturing index fell to 48.1 in November from 48.1 in November, indicating that production is shrinking. However, the group, whose members include small businesses, said there were positive signs, including higher prices.
“We probably saw the worst behind it,” said Tim Fiore, chair of the ISM’s manufacturing business survey committee.
The slowdown in global economic growth and declining demand in the United States have hurt manufacturers. The Trump administration’s tariffs on goods from China and other countries have pushed up the price of raw materials and materials, and retaliated by U.S. trading partners, making it harder. American manufacturers to sell their products abroad.
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Joyce M. Rosenberg, Associated Press