Housing starts increased 2.1% in July to a seasonally adjusted 1.21 million units annualized. Permits slipped .1% to 1.15 million units annualized, on a big drop in single family units.
One of the hallmarks of a deflationary credit bust is declining trade volumes, something I have pointed out repeatedly. Global ocean shipping firms following a bruising price war in an attempt to maintain shipping volumes and gain market share have slashed ship orders by about 60% and look to scrap some 1,000 ships this year in an attempt to rein in costs and cut capacity running some 30% ahead of demand at present. If these trends hold they will mark a 3rd consecutive year of falling orders for new ships and increasing scrap rates for existing ships.
This is Caleb Lawrence Registered Investment Adviser Scotts Valley Drive and Willis Road in the Scotts Valley Plaza, Suite 202 or call me toll free at 888-RICH PIG / 888-742-4744.
You can catch me on the radio at noon each business day as well on California’s central coast. KPIG 107.5 FM in the Monterey Bay or KPYG 94.9 FM in San Luis Obispo.
Rebroadcasts, additional writings and other entries are also available on my Blog at www.clinvestments.com
Wealth manager advisory services offered through Caleb Lawrence Registered Investment Adviser Inc.