Fannie Mae’s Economic and Strategic Research (ESR) Group today released its October 2022 commentary. According to the ESR, the combination of high inflation, monetary policy tightening, and a slowing in the housing market is still projected to tip the economy into a modest recession in 2023Q1.
Wood Markets News
Associate Builder and Contractors Backlog Indicator Increases to 9 Months in September
The Associated Builder and Contractors reported on Tuesday that its Construction Backlog Indicator increased to 9.0 months in September. This figure is based on a survey conducted between September 20th and October 5th. Year-over-year the reading is 1.4 months higher than in September 2021.
Producer Price Index for Final Demand Up 0.4% in September
The Bureau of Labor Statistics reported today that the Producer Price Index (PPI) for final demand, seasonally adjusted, increased 0.4% in September. On an unadjusted basis, final demand prices advanced 8.5% for the 12 months ending in September.
Mortgage Applications Decline in the Week Ending October 7th, Marking Third Consecutive Drop
According to data from the Mortgage Bankers Association’s Weekly Mortgage Application Survey, for the week ending October 7, the Market Composite Index (a measure of mortgage loan application volume) decreased 2.0% on a seasonally adjusted basis from one week earlier.
Conifex Timber Announces 2-Week Temporary Curtailment at Its Mackenzie, BC, Operation
Citing declining lumber prices and a worldwide softening in demand, Conifex Timber Inc. announced on Friday afternoon that it would be temporarily curtailing production at its Mackenzie, BC, sawmill operation for two weeks, starting on Tuesday, October 11th.
Nationwide Rail Strike Again a Possibility, as Third-Largest Railway Union Rejects Tentative Agreement
The third-largest freight railway workers union, the Brotherhood of Maintenance of Way Employees Division (BMWED) of the Teamsters union, reported on Monday that 56% of its more than 11,000 workers had voted against accepting the US Class 1 freight railroads’ tentative agreement offer.
Oregon District Judge Rules Bureau of Land Management Timber Sale Violated the Endangered Species Act
An Oregon District Court judge ruled against the US Fish and Wildlife Service’s justification for a Bureau of Land Management timber sale of nearly 18,000 acres, which includes old growth forests, because it violated the Endangered Species Act.
Construction of binderholz’ Solid Wood Panel Plant II In Salzburg, Austria, Nearing Completion
Construction on binderholz’ solid wood panel plant II located in in St. Georgen bei Salzburg, Austria, began in August 2021, and production is anticipated to start in late 2022Q4. According to binderholz, the site will have the world’s most modern and powerful solid wood panel plant.
Hurricane Ian’s Final Insured and Uninsured Damages an Estimated $41–70 Billion
An updated CoreLogic analysis amid Hurricane Ian recovery efforts estimates $41-70 billion in total flood/wind losses. The estimate includes wind loss, reevaluated insured and uninsured storm surge loss, and newly calculated inland flood loss for residential and commercial properties.
Residential and Non-Residential Construction Employment Continued to Grow in September
A closer look at the US Bureau of Labor Statistics total nonfarm payroll report for September, with a focus on construction employment, reveals that employment in the sector increased by 19,000 to a total of 7.7 million in September. Residential construction added 6,4000 jobs and employment currently is above its February 2020 level.