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■ Sales of new US homes have plunged
■ Canadian housing market looking weaker
■ European markets remain weak
Builders' merchant, Wolseley, has maintained a relatively upbeat stance in recent months, issuing two positive trading statements amid signs that house building and construction markets are starting to improve. However, more recent data suggests that the modest bounce back from last year's depressed levels may already be running out of steam.
Revenue from the US - the group's largest business - fell 10 per cent in the third quarter of the year to 30 April. And, helped by the withdrawal of government incentives for first time-buyers, conditions have deteriorated there since - May saw sales of new homes in the US fall to an all-time low; inflicting a heavy blow on the housing sector's fragile recovery. Moreover, Wolseley's next three biggest markets - the UK, France and the Nordic region - are all suffering from a squeeze in consumer spending, higher taxes and rising unemployment.
Still, third-quarter turnover has risen 19 per cent year-on-year in Canada. Although, adjust for currencies, and like-for-like sales there grew by a more modest 4 per cent, while recent evidence points to a sales slowdown.
