Forecasting firm IHS Global Insight says spending on home improvements is up in the U.S. for the first time since 2006. The news offers a possible boost for the construction industry, according to a report by the Wall Street Journal.
IHS Global predicts that homeowners and landlords spent 3.3 percent more on everything from small renovations to full-scale remodeling jobs in 2011, with an additional 5.7 percent growth expected in 2012.
“People are remodeling instead of moving,” says the National Association of Home Builders’ chief economist.
Here’s how industry giants Home Depot and Lowe’s are trading on the news:
The Home Depot, Inc. (NYSE:HD): HD shares recently traded at $44.56, down $0.85, or 1.87%. They have traded in a 52-week range of $28.13 to $45.42. Volume today was 7,494,255 shares versus a 3-month average volume of 10,786,300 shares. The company’s trailing P/E is 19.20, while trailing earnings are $2.32 per share.
Lowe’s Companies Inc. (NYSE:LOW): LOW shares recently traded at $26.66, down $0.67, or 2.45%. They have traded in a 52-week range of $18.07 to $27.57. Volume today was 8,949,347 shares versus a 3-month average volume of 16,412,300 shares. The company’s trailing P/E is 19.52, while trailing earnings are $1.37 per share.