News in end use

The U.S. Department of Labor is reporting that an additional 215,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday, February 26, 2022. This is a decrease of 18,000 from the previous week’s revised level. The 4-week moving average was 230,500.

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending February 25, 2022, the Market Composite Index (a measure of mortgage loan application volume) decreased -0.7% on a seasonally adjusted basis from one week earlier.

Statistics Canada (StatsCan) reported on Tuesday (3-1-22) that real gross domestic product (GDP) in Canada grew 1.6% in Q4 2021, following a 1.3% rise in Q3 2021. Real GDP posted a strong 4.6% growth in all of 2021, after the COVID-19 pandemic-induced decline (-5.2%) in 2020. Final domestic demand rose 0.7% in Q4 2021.

According to the February ADP® National Employment Report™, released today (3-2-22), nonfarm private sector employment increased by 475,000 jobs from January to February. ADP’s chief economist said, “Hiring remains robust but capped by reduced labor supply post-pandemic. Last month, large companies showed they are well-poised to compete with higher wages and benefit offerings.”

According to data provided by the FDIC, with further analysis provided by the National Association of Home Builders (NAHB), residential construction loan volume during Q4 2021 reached a post-Great Recession high, as home building activity posted gains for the entire year. According to the report, the volume of 1–4-unit residential construction loans made by FDIC-insured institutions increased 1% during Q4 of 2021.

On Tuesday (3-1-22), the U.S. Census Bureau reported that total construction spending during January 2022 was estimated at a seasonally adjusted annual rate (SAAR) of $1,677.2 billion, 1.3% above the revised December estimate of $1,655.8 billion. The January figure is 8.2% above the January 2021 estimate of $1,549.8 billion.

Statistics Canada (StatsCan) reported today (3-1-22) that the real gross domestic product (GDP) was virtually unchanged in December, following six consecutive months of growth. Growth in services-producing industries (+0.1%) was offset by a decline in goods-producing industries (-0.1%).

According to the latest report from Redfin, the Seattle-based, technology-powered real estate firm, during the four weeks ending February 20, 2022, the number of newly listed homes for sale was down “just” -2% year-over-year. That is the smallest decline since mid-November.

Statistics Canada reported today that prices of products manufactured in Canada, as measured by the Industrial Product Price Index, rose 0.3% on a monthly basis in January 2022 and were up 16.9% year-over-year. The prices of raw materials purchased by manufacturers operating in Canada, as measured by the Raw Materials Price Index, increased 6.5% month-over-month.

In a recent posting, the National Association of Home Builders (NAHB) has brought to light the “missing middle” in the residential construction sector. The missing middle includes the development of medium-density housing, which includes townhouses, duplexes, and other small multifamily unit properties.