The University of Michigan today (10-15-21) released its preliminary Consumer Sentiment Index (CSI) for October. The CSI declined to a reading of 71.4 in October, down from 72.8 in September. This is a month-over-month decrease of -1.9% and a year-over-year decrease of -12.7% (81.8 in October 2020).
Wood Markets News
Weyerhaeuser Provides Behind-the-Scenes Look at Oregon Tree Farms’ Recovery from 2020 Wildfire Season
Weyerhaeuser has provided a fascinating behind-the-scenes look at how all four of their Oregon tree farms’ operations were able to deal with and recover from the wildfire season of 2020. All four farms suffered significant damage after nearby wildfires on state and federal timberlands encroached on the company’s property in September 2020.
3 Years After Hurricane Michael Devastated the Florida Panhandle, Logging Industry Recovery is Still Ongoing
Sunday, October 10, 2021 marked the three-year anniversary of Hurricane Michael’s devastation of the Florida panhandle’s logging industry. The Florida Forest Service (FFS) estimates that Hurricane Michael damaged approximately 10-15 years worth of timber supply.
Remodeling Market Index Up Year-Over-Year Despite Supply Chain and Labor Availability Headwinds
The National Association of Home Builders (NAHB) / Royal Building Products Remodeling Market Index (RMI) posted a reading of 87 in Q3 of 2021, up 5-points from Q3 of 2020. The HMI reading of 87 is a sign of positive residential remodelers’ sentiment for projects of all sizes.
Canadian Investment in Building Construction Declines for Fourth Consecutive Month in August
Statistic Canada (StatsCan) reported on Wednesday (10-13-21) that investment in building construction declined for the fourth consecutive month, falling -2.0% in August to $17.7 billion (CAD). Residential construction was down -2.9% for the month, while investment in non-residential construction edged up 0.6%.
Mortgage Rates Move Back Above 3% in the Week Ending October 14, 2021
Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending October 14, 2021. The PMMS reports that 30-year fixed-rate mortgage averaged 3.05% with an average 0.7 point, up from last week when it averaged 2.99% percent. A year ago, at this time, the 30-year FRM averaged 2.81%.
Producer Price Index for Final Demand Increases 0.5% in September
The Bureau of Labor Statistics (BLS) reported today (10-14-21) that the Producer Price Index (PPI) for final demand, seasonally adjusted, increased 0.5% in September. Final demand prices rose 0.7% in August, 1.0% in July, 1.0% in June, 0.8% in May, 0.6% in April, 1.0% in March, and 0.5% in February.
Weekly Jobless Claims Decline in the Week Ending October 9, 2021
The U.S. Department of Labor is reporting that an additional 293,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday, October 9, 2021. This is a decrease of 36,000 from the previous week’s revised level and the lowest level for initial job claims since March 14, 2020.
Segezha Group to Purchase All Assets of Inter Forest Rus. for $512 Million
Segezha Group has announced that it has agreed to purchase the assets of LLC Inter Forest Rus from Bonum Capital Ltd for $515 million. Inter Forest’s assets include wood processing and logging enterprises as well as four woodworking plants, one plywood plant, a river fleet of 98 vessels, and a substantial forest resource base in the Krasnoyarsk and Irkutsk regions of Russia.
Impact of Timber Lost to B.C.’s 2021 Summer Wildfire Season Could be Both Extreme and Long Lasting
Although the extent of the damage has yet to be fully assessed, estimates place the number of hectares burned at 900,000 hectares or 9,000 square kilometers. Depending on the severity of the burn, trees in fire zones may still be harvestable, but there is often a timeframe before harvest loses viability.