Industrial production reported August dip, partially due to Hurricane Harvey

Industrial production declined 0.9 percent in August following six consecutive monthly gains. Hurricane Harvey, which hit the Gulf Coast of Texas in late August, is estimated to have reduced the rate of change in total output by roughly 3/4 percentage point.

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August retail sales post largest decline in six months, partly due to Hurricane Harvey

Retail sales dropped 0.2 percent in August, the biggest decline in six months as motor vehicle sales tumbled 1.6 percent. Sales of building materials, electronics and appliances as well as clothing also fell.

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KBHome answers the $64,000 question with a 880-square-foot home

One thing that home builder KBHome has done during this downturn is act quickly and decisively, whether mothballing larger models and introducing smaller plans to existing subdivisions. In Houston, where bank-owned properties account for one-third of all sales, the plan is to compete on price while providing the new housing that many people prefer. From a story in BusinessWeek:

The idea is to compete with low-cost, bank-owned properties, which account for one of every three homes sold in Houston (and nationally). If the houses sell, KB will build them in other cities, targeting renters in all markets. The houses will yield higher-than-usual margins, KB says, because they have siding instead of brick and Formica countertops rather than stone. Bathrooms are lined up vertically to save copper pipe. Will the homes lure renters anticipating further home-price declines and a weak job market? KB chief Jeffrey Mezger says the mini-houses are a return to his industry's roots in post-World War II communities such as Levittown, N.Y., where 800 square feet was a typical home size.