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TEXT-Fitch: U.S. home improvement spending to grow modestly
August 21, 2012 / 8:07 PM / 5 years ago

TEXT-Fitch: U.S. home improvement spending to grow modestly

Link to Fitch Ratings' Report: The Tale of the "Measuring" Tape: U.S. Home
Improvement IndustryAug 21 - Another sign of the slow U.S. housing turnaround will come in the
form of more home improvement spending, according to Fitch Ratings in a new
report.

Fitch projects home improvement spending to increase 4.5% in 2012, with another
4% projected for 2013. While encouraging, the numbers still lag what the
industry saw during the previous housing boom. 'Until the both U.S. economy and
housing market improve more substantively, growth in home improvement spending
will remain stunted,' said Director Robert Rulla.

Nonetheless, home remodeling spending should benefit from the projected
improvement in housing turnover. Challenges, however, do remain. The home
improvement sector is still susceptible to numerous impediments that according
to Rulla, 'could derail a sustained rebound in remodeling spending'.

Among them are unemployment levels, which remain high, and consumer credit
standards, which continue to be tight. Consumer confidence also remains very
weak compared to past cycles.

Fitch's latest 'Tale of the "Measuring" Tape' is available at
'www.fitchratings.com' or by clicking on the above link.

Additional information is available at 'www.fitchratings.com'.

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