U.S. Building Materials to Benefit from Construction Growth in 2016

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CHICAGO, Ill.—Continued growth in overall construction spending, albeit at a more moderate pace following a strong 2015, supports the stable outlook for the U.S. building and home products and services sector in 2016, according to Fitch Ratings’ 2016 outlook report. Fitch projects construction spending will expand 8 percent next year, driven by continued strength in new home and commercial construction. Fitch also expects modest growth in home improvement and public construction spending. The recent passage of the new $305-billion multi-year highway bill should boost public construction spending, although the positive effect will likely be more evident during the latter half … Read more

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Turner’s Fourth Quarter Building Cost Index Reflects Increasing Construction Activity

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Turner Construction Company announced that the Fourth Quarter 2015 Turner Building Cost Index – which measures costs in the non-residential building construction market in the United States – has increased to a value of 959. This reflects a 1.05% increase from the Third Quarter 2015 and a 4.58% yearly increase from the Fourth Quarter 2014. Overall construction activity remained stable through the Fourth Quarter, with slight increases in the West, and greater increases in the South and Southeast. The reduced cost of fuel is offsetting most material cost increases and fluctuations. “The high volume of work underway continues to put … Read more

Filed under: Economic News

ABC Predicts Continued Growth for the Construction Industry in 2016

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Associated Builders and Contractors (ABC) forecasts a continued steady economic recovery for the U.S. commercial and industrial construction industries in 2016. Despite a weak global economy, the industry’s solid economic recovery in 2015 should continue in 2016, led by strong consumer spending. “As the mid-phase of the economic recovery continues, ABC forecasts growth in nonresidential construction spending of 7.4 percent next year along with growth in employment and backlog,” said ABC Chief Economist Anirban Basu. “The mid-phase of the recovery is typically the lengthiest part and ultimately gives way to the late phase, when the economy overheats. The current recovery … Read more

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November Construction Slides 5 Percent

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NEW YORK, N.Y. — At a seasonally adjusted annual rate of $563.3 billion, new construction starts in November fell 5 percent from the previous month, according to Dodge Data & Analytics. The decline represented a partial pullback after the 13 percent increase reported for total construction in October, as nonresidential building lost some momentum following its improved October pace. Decreased activity was also reported for housing in November, while the nonbuilding construction sector (public works and electric utilities/gas plants) held steady. During the first eleven months of 2015, total construction starts on an unadjusted basis were $597.9 billion, up 8 percent … Read more

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Construction Employment Posts Widespread Growth in November

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Strong demand for construction projects fueled job growth in November in 38 states compared to October and in all but six states over the past 12 months, according to an analysis of Labor Department data recently released by the Associated General Contractors of America. Association officials said, however, that the shortage of available workers was likely keeping firms from expanding headcounts even more rapidly in many parts of the country. “In nearly every state, contractors are busier now than a year ago,” said Ken Simonson, chief economist for the association. “Employment is up, but the industry would be expanding even … Read more

Filed under: Economic News