Looks like the US new residential market continues to be weak with rising mortgage rates and supply of unsold inventory to be highest among recent years as the demand finally slows down. (All unsold)
- New construction happens to be around 30-40% of the demand while the rest is renovation and remodelling. With the US economy looking to be in a period of mild recession, and with high inflation eating up further into US households disposable incomes, causing household savings rate to dip into multi year lows –
looks like a bit of contradictory inputs coming from the Caesarstone management on how they view the demand environment shaping up – new construction and renovation and remodelling.
While it merits consideration that Quantra typically serves a wealthier clientele that could be relatively insulated in a downturn and they are a minor part of the market share currently, there could be some form of operating deleverage play out until the demand environment gets better.
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