FEA’s Weekly Orders Survey Participants Encouraged by Another Increase in Builder Confidence and Strong September Housing Starts and Permits

Dealers responding to FEA’s Weekly Orders Survey could not help but comment favorably on the Builder Confidence report for October, with the reading moving to a new record high of 85. They were also very pleased to see the Census Bureau report on September Housing Starts and Permits being back on the positive side after a minor setback in August. Most respondents continue to report that their sales to builders are in close alignment with the pace of previous years’ activity for late October.

With the exception of OSB, which remains the only commodity item not in the midst of a price correction, the remaining lumber and panel products continue to decline. Although prices have come off their record-breaking high levels, they remain well above average. Concerns about additional downside risks are limiting buyers’ purchases to must have fill-in items. Also, many dealers are in the process of drawing down inventories to meet year-end inventory dollar goals. Ongoing truck and rail issues continue to contribute to late shipments and from all indications, this problem will continue into the foreseeable future.