Just posting this chart of lumber, saw in a John Murphy article about how a fall in lumber prices heralded a downturn in housing. This chart suggests it's already on its way down. I assume lumber is used for construction of houses and hence less demand means lower prices? Wish I had the housing figures (not sure which lot) to compare it to. Will check the Murphy article again to confirm. Monthly chart btw.
Kauri
18th-November-2005, 02:38 AM
Just posting this chart of lumber, saw in a John Murphy article about how a fall in lumber prices heralded a downturn in housing. This chart suggests it's already on its way down. I assume lumber is used for construction of houses and hence less demand means lower prices? Wish I had the housing figures (not sure which lot) to compare it to. Will check the Murphy article again to confirm. Monthly chart btw.
WASHINGTON (MarketWatch) - New construction of U.S. homes fell 5.6% in October to a seasonally adjusted annual rate of 2.014 million, the Commerce Department said Thursday.
Building permits - which foreshadow future activity - dropped 6.7% to 2.071 million annual units. Read the full report. (http://www.census.gov/newresconst)
