B.C.’s lumber manufacturing industry depends on housing markets in the United States. Recent statistics indicate that U.S. markets remain beaten down and recent signs of recovery are weak. Sales of existing homes plunged in December, and housing starts fell four per cent in December and remain near long-term historic lows.

More positively for U.S. housing markets, the tax credit program has been extended to spring, residential building permits increased 11 per cent in December, and resale housing prices have bottomed out and appear to be edging up. These indicators suggest moderate, near-term future growth in housing sales, starts and prices.

B.C. accounts for about half of Canada’s softwood lumber production. Statistics Canada’s latest estimate of sawn lumber production in B.C. shows a continuing slow recovery.

Production totalled 2.06 million dry cubic metres in November, seasonally adjusted, up 1.8 per cent from October. The Central Interior region led the way, while output also increased materially in the Northern Interior and Southern Interior regions. Meanwhile, output declined in the Coastal region.