US building permits hit a 13-year high this week, supported by a low mortgage rates. Despite this apparently positive outlook for the sector, Consensus credit risk data indicates that credit quality for US Household Goods & Home Construction companies has been steadily falling for some time.
In the UK, post-election optimism and increased certainty around Brexit has led to a ‘new year bounce’ in the number of new buyers and sellers entering the market. UK Household Goods & Home Construction firms have seen greater stability in their credit quality fortunes over recent months compared to their US counterparts.
- Credit quality for US-based firms continues to deteriorate, with overall probability of default increasing 12% on a year-over-year basis.
- UK-based firms have seen relative credit stability in recent months.
US Household Goods and Home Construction Firms
The overall credit picture for US firms continues to worsen. The group saw credit quality deterioration of 2.5% on a month-over-month basis and 12% on a year-over-year basis.
UK Household Goods and Home Construction Firms
In contrast to the US, the credit situation for UK firms has stabilized. Credit quality deteriorated by 1.7% on a month-over-month basis but has been essentially flat on a year-over-year basis, dropping by only 0.2%.
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