Home construction exchange traded funds (ETFs) are down this morning after a report showed the production is at its slowest pace in 17 years.

The 6.3% plunge was much larger than expected, reports Martin Crutsinger for the Associated Press. Economists had predicted at 1.6% decline.

A barometer of future building also fell to its lowest lever in more than 25 years. If things continue at this rate, the industry is on pace to building the fewest new homes and apartments this year since the end of World War II.

  • SPDR S&P Homebuilders (XHB), down 27.7% year-to-date (black line)
  • iShares Dow Jones U.S. Home Construction (ITB), down 27.9% year-to-date (green line)

Homebuilder Exchange Traded Funds (ETFs)

Not surprisingly, the mood of consumers in October has suffered a record drop, according to Burton Frierson for Reuters. The Reuters/University of Michigan Surveys of Consumers said its index plummeted to 57.5 this month, down from 70.3 in September.

Confidence is at its lowest since 1980, short-term inflation expectations rose, and consumers rated the current economic condition to be the worst on record.

  • SPDR S&P Retail (XRT), down 32.4% year-to-date (black line)
  • Retail HOLDRs (RTH), down 21.9% year-to-date (green line)

Retail Exchange Traded Funds (ETFs)

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.