The U.S. Department of Labor is reporting that an additional 340,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday, August 28, 2021. This is a decrease of 14,000 from the previous week’s revised level and the lowest level for initial claims since March 14, 2020, when it was 256,000.
Wood Markets News
Challenger Reports August Job Cuts -86% Lower Year-Over-Year and the Lowest Level Since June of 1997
According to the latest Job Cut Report from Challenger, Gray & Christmas (CG&C) Inc., a global outplacement and business and executive coaching firm, U.S. based employers announced 15,723 job cuts in August, down -17% from the 18,942 cuts announced in July. August 2021’s total is the lowest since in June 1997, when 15,091 job cuts were announced.
U.S. Regulators Reject Canadian National Railway’s Voting Trust to Buy Kansas City Southern Railroad
On Tuesday, August 31, 2021, the U.S. rail regulator rejected a voting trust structure that would have allowed the Canadian National Railway Co. (CN) to proceed with its $29 billion proposed acquisition of U.S.-peer Kansas City Southern Railroad (KCS). The regulator said that the decision was based on antitrust concerns and is a major setback to the deal that would have created the first direct railway linking Canada, the United States, and Mexico.
MTI Researchers to Seek Answer: Can Ontario’s Wood Supply Keep up with Growing Mass Timber Usage?
The up-and-coming new material for sustainable building is mass timber. Mass timber could be part of the climate change solution and become the cornerstone of the Province of Ontario’s economic and environmental future. The question now is can supply keep up with the rising demand? Researchers at the University of Toronto’s Daniels Faculty’s Mass Timber Institute (MTI) are about to go in search of that answer.
Total U.S. July Construction Spending 0.3% Higher Month-Over-Month and 9.0% Higher Year-Over-Year
The U.S. Census Bureau has announced that total construction spending during July 2021 was estimated at a seasonally adjusted annual rate (SAAR) of $1,568.8 billion, 0.3% above the revised June estimate of $1,563.4 billion. The July figure is 9.0% above the July 2020 estimate of $1,439.6 billion.
Mortgage Applications Drop -2.4% in the Week Ending August 27, 2021
According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending August 27, 2021, the Market Composite Index, a measure of mortgage loan application volume, decreased -2.4% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased -3% compared with the previous week.
ADP Reports Private Sector Employment Increased by 374,000 Jobs in August
According to the August ADP® National Employment Report™, nonfarm private sector employment increased by 374,000 jobs from July to August. The report, which is derived from ADP’s actual payroll data, measures the change in total nonfarm private employment each month on a seasonally adjusted basis.
Rayonier Advance Materials Inc. Completes Sale of its Lumber and Newsprint Assets to GreenFirst Forest Products Inc.
On Monday, August 20, 2021, Rayonier Advanced Materials Inc. reported that it has completed its previously announced sale of its lumber and newsprint assets (the “Purchased Assets”) to GreenFirst Forest Products Inc. (“GreenFirst”), a Canadian lumber company, for a total purchase price of approximately US$235 million, subject to final adjustments.
Idaho Forest Group Announces Plans to “Indefinitely” Suspend Operations at their St. Regis, Montana Sawmill
Idaho Forest Group (IFG), a private company based in Coeur d’ Alene, Idaho, announced on Monday, August 30, 2021 that it intends to indefinitely suspend operations at its St. Regis, Montana operation by late November. The St. Regis mill employs 99 people and has contracts with loggers and haulers, some of whom may continue delivering logs to other IFG mills in Northern Idaho.
Federal Housing Finance Agency Reports U.S. Home Prices in June Increase 1.6% Month-Over-Month and 17.4% Year-Over-Year
According to the latest Federal Housing Finance Agency (FHFA) House Price Index (HPI®), U.S. house prices increased 1.6% month-over-month in June. House prices increased 17.4% from June 2020 to June 2021. Compared to Q1 of 2021, house prices were up 4.9%.