Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Economic Watch: Housing, Consumer Confidence Down as Industrial Production Stalls

Political uncertainty could be partially to blame for some less-than-stellar economic reports, with show housing starts dropping, consumer confidence slipping, and industrial production stalled.

Evan Lockridge
Evan LockridgeFormer Business Contributing Editor
June 16, 2017
Economic Watch: Housing, Consumer Confidence Down as Industrial Production Stalls

 

4 min to read


Newly issued economic reports show housing starts in the U.S. declined for the third straight month in May, while consumer confidence slipped and industrial production was unchanged due to a drop in manufacturing.

Led by a drop multifamily production, nationwide housing starts fell 5.5% in May to a seasonally adjusted annual rate of 1.09 million units, according to figures released Friday by the Commerce Department.

Ad Loading...

Multifamily starts fell 9.7% to a seasonally adjusted annual rate of 289,000 units, while single-family production edged down 3.9% to 794,000.

“After a strong start for single-family building this year, recent months have recorded softer readings,” said NAHB Chief Economist Robert Dietz. “However, on a year-to-date basis, single-family starts are up 7.2% as builders add inventory to the market.”

Overall permit issuance in May was down 4.9% to a seasonally adjusted annual rate of 1.17 million units. Single-family permits inched down 1.9% to 779,000 units, while multifamily permits fell 10.4% to 389,000.

Ad Loading...

Consumer Confidence Erodes

This came as a separate and preliminary report showed consumer confidence fell in June and is up only marginally compared to the same time a year ago, according to the University of Michigan Survey of Consumers.

The modest early June drop of 2.6 points in the Sentiment Index to 97.1 masks a much larger decline since June 8. Prior to then it averaged 97.7, but since June 8, the index fell to 86.7, a decline of 11 points.

While this date corresponds with former FBI Director James Comey's testimony over his firing, only a few consumers spontaneously referred to him or his testimony when asked to explain their views, according to Surveys of Consumers chief economist, Richard Curtin.

“Importantly, the decline was observed across all political parties, but the loss in confidence among self-identified Republicans since June 8 was larger than among Democrats, with Independents showing the greatest falloff,” he said. “The recent erosion of confidence was due to more negative perceptions of the proposed economic policies among Democrats and the reduced likelihood of passage of these policies among Republicans.”

He noted a strong job market, improved household income and wealth have provided a financial buffer against rising uncertainties.

Ad Loading...

“Nonetheless, consumers have become less optimistic about the future course of the domestic economy. Even with the expected bounce back in spending in the current quarter, personal consumption is expected to advance by 2.3% for all of 2017,” Curtin said.

Manufacturing Stalls Industrial Production

This follows a report from the day before that showed activity at the nation’s factories, mines and utilities was unchanged in May from the month before, according to the Federal Reserve.

Its measure of industrial production follows a large increase in April and smaller increases in February and March.

Manufacturing output declined 0.4% in May and showed little net change since February but is up 1.4% compared to the same time a year earlier.

The measures for mining and utilities posted gains of 1.6% and 0.4%, respectively, in May. Together these two sectors make up a little more than a tenth of all U.S. industrial production.

Ad Loading...

At 105% of its 2012 average, total industrial production in May was still 2.2% above its year-earlier level.

Capacity utilization for the industrial sector edged down 0.1 of a percentage point in May to 76.6%, a rate that is 3.3 percentage points below its 1972–2016 average.

The May performance in manufacturing did not come as a surprise following two reports released earlier this month, one indicating the sector barely expanded from April while another showed the weakest reading since September.

It also marks two declines in the past three months and serves as the most recent reminder that the factory sector is struggling to put points on the board in a climate of pronounced fiscal policy and political uncertainty, according to Tim Quinlan, senior economist at Wells Fargo Securities.

In a note to investors, he said the May slump in manufacturing production could be temporary.

Ad Loading...

“The biggest declines from an industry perspective were motor vehicles and parts, which fell 2% in the month, as well as wood products and primary metals, which each posted declines of 1.4%,” Quinlan said. “The giveback in autos production may sound ugly, but it follows a 4.1% pick-up in the prior month, so the softness here is only a partial payback.”

He noted that regional reports for June indicate manufacturing “solidly exceeded consensus expectations for June” and may indicate additional firming of the manufacturing sector when June figures are released.

“We maintain our forecast for incremental manufacturing improvement, even in the face of this soft report for industrial production,” Quinlan said.  

More Fleet Management

Waabi-Volvo autonomous VNL truck.
Fleet Management•by News/Media Release•October 13, 2026

Volvo, Waabi Start Commercial Autonomous Operations in Texas

Volvo VNL Autonomous trucks, powered by the Waabi Driver, are hauling freight directly to third-party facilities for a customer in Texas.

Read More →
Illustration of silver robot waving his hand and a Samsara AI prompt on screen to call drivers
Fleet Management•by Staff•October 13, 2026

Samsara Launches Custom AI Agent Builder

Agent Studio lets fleets create AI tools for hours-of-service monitoring, reporting and driver support, including agents that communicate by phone.

Read More →
Overhead view of an Einride autonomous electric truck positioned between trailers at an EASE Logistics warehouse loading area in Marysville, Ohio.

Einride Driverless Electric Trucks Begin Daily Freight Operations in Ohio

Two cabless electric trucks are hauling freight between EASE Logistics facilities in Marysville, Ohio, as part of a multi-state truck automation project.

Read More →
Ad Loading...
Illustration of map with GPS markers overlaid with Geotab fleet card and a fuel pump nozzle
Fuel Smarts•by Staff•October 2, 2026

Geotab Links Fleet Card to Vehicle Data

The new card combines fuel discounts with telematics-based purchase controls. Geotab’s analysis also points to potential savings from choosing lower-priced fuel stops.

Read More →
Cyberstop column illustration showing multi factor authorization
Fleet Management•September 29, 2026

How MFA Helps Protect Trucking Fleets

Multi-factor authentication adds protection when passwords are stolen. Here’s how it works and where fleets should start.

Read More →
Three generic semi-trucks break through a fractured wall against a dark blue digital background, symbolizing trucking technology overcoming data silos.
Fleet Management•September 28, 2026

How Better Freight Data Helps Trucking Teams Get Ahead of Disruption

Trucking and logistics teams have plenty of data. The problem is getting the right information in front of the right people soon enough to act. Better-connected data can help teams spot trouble earlier and make smarter decisions before small problems become big ones.

Read More →
Ad Loading...
Photo of man in collared buttoned shirt speaking on stage in front of a backdrop that says Trimble
Fleet Management•by Deborah Lockridge•September 28, 2026

Trimble: Taking Artificial Intelligence in Trucking Beyond Faster Tasks

At Insight 2026, Trimble executives argued that fleets may need to redesign workflows to get more from AI as it introduced new products and enhancements. AI’s value will depend on how fleets combine automation with their people's knowledge.

Read More →
Geotab Whitepaper Data Tells the Story.  Why ELD Dash Cam belong together
Sponsored•September 28, 2026

Build a bulletproof fleet: Uniting ELDs and dash cams for total compliance

An ELD can prove compliance, but it cannot always prove what happened on the road. Discover how uniting accurate ELD data with AI-powered dash cam video can help your fleet strengthen compliance, defend against liability, protect drivers and reduce operational costs.

Read More →
Illustration showing ladders against a blue background with Heavy Duty Trucking Emerging Leaders logo and the words "2026 nominations now open"
Fleet Management•by Staff•September 21, 2026

Nominations Open for HDT Emerging Leaders

Heavy Duty Trucking is looking for accomplished trucking fleet professionals under 40 who are making an impact and helping lead the industry forward.

Read More →
Ad Loading...
Illustration of Penske day cab backed into loading dock with graphic of generic charts and graphs and a penske logo.
Fleet Management•by Deborah Lockridge•September 17, 2026

Why Private Fleets Are Taking More Freight

Private fleets are putting their own trucks on demanding customers and high-cost lanes as companies seek greater control over service, costs, and capacity.

Read More →