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Trucker Shares Seen Rallying in U.S. With Housing Rebound - Bloomberg
Trucking companies may need to put more vehicles on the road to support a recovery in U.S. residential construction, which might send their shares higher.
Housing starts rose 2.6 percent to a 717,000 annual rate in April, beating the 685,000 median estimate of 80 economists surveyed by Bloomberg News. Construction has improved 50 percent from a low of 478,000 reached in April 2009, during the 18-month recession that ended two months later, based on data from the Commerce Department.
New home construction generally requires between five and eight truckloads of transport supplies such as lumber, roofing materials and interior furnishings, according to Todd Fowler, an analyst in Cleveland at KeyBanc Capital Markets Inc. Photographer: Ty Wright/Bloomberg
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“All of the freight required to build a new home has a very positive impact on trucking activity,” said Todd Fowler, an analyst in Cleveland at KeyBanc Capital Markets Inc., the investment banking arm of KeyCorp. As a rule of thumb, each new residence requires between five and eight truckloads to transport supplies such as lumber, roofing materials and interior furnishings, he said.
Purchases of new homes probably rose in April to a 337,000 pace, up 2.7 percent from the prior month, according to the median estimate in a Bloomberg News survey of 72 economists. Sales data is to be released by the Census Bureau tomorrow.
Trucking companies may need to put more vehicles on the road to support a recovery in U.S. residential construction, which might send their shares higher.
Housing starts rose 2.6 percent to a 717,000 annual rate in April, beating the 685,000 median estimate of 80 economists surveyed by Bloomberg News. Construction has improved 50 percent from a low of 478,000 reached in April 2009, during the 18-month recession that ended two months later, based on data from the Commerce Department.
New home construction generally requires between five and eight truckloads of transport supplies such as lumber, roofing materials and interior furnishings, according to Todd Fowler, an analyst in Cleveland at KeyBanc Capital Markets Inc. Photographer: Ty Wright/Bloomberg
.
“All of the freight required to build a new home has a very positive impact on trucking activity,” said Todd Fowler, an analyst in Cleveland at KeyBanc Capital Markets Inc., the investment banking arm of KeyCorp. As a rule of thumb, each new residence requires between five and eight truckloads to transport supplies such as lumber, roofing materials and interior furnishings, he said.
Purchases of new homes probably rose in April to a 337,000 pace, up 2.7 percent from the prior month, according to the median estimate in a Bloomberg News survey of 72 economists. Sales data is to be released by the Census Bureau tomorrow.
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