The cooling housing market and a softening of capital spending will bring a slowdown in U.S. manufacturing activity next year, according to a study released by an industry trade group on Thursday.
… “The housing market has turned, it’s going to be down this year and even down more sharply next year,” Dan Meckstroth, chief economist of the Arlington, Virginia-based trade group, told Reuters.
U.S. stocks dropped for a second day after two homebuilders cut their earnings forecasts, fueling concern that the housing slump may curb economic growth.
A U.S. housing sector downturn may last for years because of excess supply and faltering consumer confidence stemming from worry over U.S. foreign policy and federal government competence, the head of nation’s largest builder of luxury homes said on Wednesday.
… “This isn’t a soft landing, it’s harder than a soft landing,” Toll told Reuters in an interview. But he denied the market was headed for a more dramatic decline in prices as some observers fear. “We are not crashing,” he said.
The National Association of Realtors has lowered its forecast for home sales this year, and says housing prices will probably fall below year-ago levels in the short term.