Falling home values dampened building and construction recovery hopes, as declines in home equity threaten to drag down consumer spending.

Yet home building firms Lennar and KB Homes, which reported declines in third quarter earnings, both said orders for future construction are on the rise, suggesting the U.S. housing market is bouncing up from the bottom. KB Homes reported Friday net orders are up 40% while homes in its backlog are up 22%. Lennar Corp. projects a strong 4Q on the basis of an 11 percent rise in new home orders.

As economists ratchet down near term growth prospects on a slew of bad news influenced by European financial woes, a number of U.S. wood industry firms continue plans for recovery, confident it will arrive eventually. For example, United Furniture Industries last week announced it would open a 500,000 square foot manufacturing and warehouse plant in Victorvilleville, CA for Simmons Upholstery furnishings.

A number of architectural woodworking and millwork firms around the U.S. also announced plans for expansion, taking advantage of the downturn to position for future growth, or pick up business from less fortunate competitors, such as Merino, an Elk Grove VIllage, IL custom woodworking and construction firm whose woodshop was auctioned last week.  also

D & L Wood Products, a 20-employee Crown Point, IN architectural woodworking firm told Northwest Indiana Times it would build a 6,000-square-foot office building adjoining its 15,000 square foot manufacturing plant. Its growth is driven by large commercial institutional projects. In 2010, D&L completed a full-service Westin in Austin, TX; the world-renowned Brush Creek Ranch in Wyoming, as well as the largest JW Marriott in the world in Indianapolis, featuring 1,005 guestrooms.

In Seattle, J Wanamaker Cabinetry and Woodwork opened a second showroom. James Wanamakerhas been making intricate custom cabinetry since 1999, beginning in a small home workshop, later opening a store in Seattle's fashionable Greenwood neighborhood, and now a second location on 96th St.