The US government's shutdown that started today will delay the release of monthly domestic construction spending data closely watched by a number of commodity markets, including polyvinyl chloride (PVC), polyurethane, asphalt, steel and non-ferrous metals.
The partial government shutdown started today and marks the first in six years after talks among lawmakers and the White House to reach a last-minute funding agreement failed.
The US Census Bureau, which was expected to release its monthly residential and commercial construction data today, anticipates 7pc of its 11,100 staff will be exempted from furloughs during the shutdown, but "most activities will cease", according to the bureau's updated shutdown plan.
The bureau's website today posted a message saying information would not be updated due to the lapse of funding and inquiries not answered until after funding has resumed.
The monthly report is a critical dataset for domestic PVC market participants and others because it provides insight into construction activities that consume large volumes of certain commodities, especially in the residential market.
Domestic PVC and polyurethane demand have remained under pressure this year on a weaker housing market. Participants are closely monitoring construction spending, housing starts and permits for a fundamental shift to stimulate demand, especially after the US Federal Reserve cut its target interest rate and announced a series of cuts during the fourth quarter.
The building blocks of polyurethanes, such as isocyanates including polymeric MDI (PMDI), go into insulation, roofing applications and carpet underlay.
It is unclear which other government agencies will delay releases or maintain operations. The US Bureau of Labor Statistics, which publishes key data on employment, prices and inflation, plans to "completely cease operations" if funding lapses, according to a shutdown plan dated 26 September.
The US Department of Agriculture today added it will not update information on its website during the shutdown.
