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Harvard's Joint Center for Housing Studies' Remodeling Futures Program released its Leading Indicator of Remodeling Activity, which projects home improvement spending to remain volatile and weak over the next several quarters.
The LIRA predicts annual remodeling spending through the first quarter of 2012 will be down 4 percent.
“The recent slowdown in the economy has caused home improvement spending to weaken again,” said Eric S. Belsky, managing director of the Joint Center. “Falling consumer confidence levels have undermined interest in discretionary remodeling projects.”
The U.S. Census Bureau’s improvements spending series, to which the LIRA is benchmarked (see LIRA figure), was also recently revised lower.
“What looked to be a promising upturn in home improvement spending earlier this year has begun to stall,” said Kermit Baker, director of the Remodeling Futures Program at the Joint Center. “Housing starts, existing home sales, and house prices have all been disappointing lately, which has dimmed prospects for home improvement spending gains this year.”