Christopher Thornberg, Senior Economist at Anderson Forecast noted that the housing boom over the past several years has helped boost consumption by making homeowners believe they have greater net worth and employment (Calbreath, 2005). There is a strong relation in the housing market (starts) and the industrial production sector...
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When it comes to finished goods and the running P.P.I. and C.P.I., housing starts play a very vital role in that equation. Reports state that, "industrial production (in America) grew by 0.3% in February; the value of retail sales increased by 0.5%, and housing starts rose by 0.5% to a 21 year high" (The Economist, 2005)...
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