Home improvement projects soaring.

Fueled by a strong economy and stable interest rates, more consumers are taking hammer and paintbrush in hand to redecorate and remodel their homes. According to the American Express Retail Index, 39% of homeowners are undertaking home projects this year, up eight percent from 1997. The budget for these projects, estimated at $2,929, is up by 10%. Projects include interior decorating and refurnishing (59%), renovation and remodeling (32%), landscaping (29%), gardening (27%), mandatory maintenance (24%), exterior decorating work (22%), expansion (14%), and restoration (13%).

Consumers are enhancing the exterior and interior of their homes in a variety of ways. For example, 18% of those undertaking a home project will refurnish at least one room in the house, with homeowners shifting their attention away from the living...