Signs that homeowners are showing an increased interest in kitchen and other home renovations are good news for the economy as a whole, according to a new BofA Merrill Lynch Global Research report. Spending on home improvement is a powerful economic force that will provide a tail wind to the remodeling and construction industry for years to come, said Denise Chai, retail analyst at BofA Merrill Lynch Global Research, who co-authored the report. As small-scale renovations give way to bigger ticket home remodelling projects and properties turn over to new owners, a wide range of companies and sectors stand to benefit. The report looks at the reasons behind the rise in renovation investment and the latest trends in renovation activity. While the home remodelling market is often overlooked, it is helping to lead the broader housing recovery, said Michelle Meyer, senior U.S. economist at BofA Merrill Lynch Global Research. There are some near-term macro headwinds, but also strong underlying trends that will sustain spending for years to come, creating a long-term investment cycle, she added.