Construction Input Prices Continue Ascent, Could Pressure Margins

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WASHINGTON, D.C. — Construction input prices expanded in June, rising 1.1 percent on a monthly basis according to a recent analysis of the Bureau of Labor Statistics Producer Price Index released by Associated Builders and Contractors. This report marks the fourth consecutive month that input prices have expanded following eight straight months of decline. “Commodity prices stabilized in March and in many cases, including natural gas and oil, have been edging higher,” said ABC Chief Economist Anirban Basu. “Accordingly, construction materials prices are now on the rise, which all things being equal translate into smaller profit margins. Alternatively, rising costs … Read more

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Architecture Billings Index Remains on Solid Footing

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WASHINGTON, D.C. – Buoyed by increasing levels of demand across all project types, the Architecture Billings Index was positive in June for the fifth consecutive month. As a leading economic indicator of construction activity, the ABI reflects the approximate 9-12-month lead time between architecture billings and construction spending. The American Institute of Architects reported the June ABI score was 52.6, down from the mark of 53.1 in the previous month. This score still reflects an increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 58.6, down from a reading of … Read more

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Construction Spending Slips in May, Rises First Five Months of 2016

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Construction spending dipped in May but posted strong, broad-based gains for the first five months of 2016 compared to the same period in 2015, according to a recent analysis by the Associated General Contractors of America. Association officials said the construction spending gains come amid signs that contractors are having an increasingly hard time finding qualified workers to hire. “Mild winter weather in many regions early in 2016, followed by extreme rains in some locations in May, has probably distorted monthly spending patterns but shouldn’t mask the robust widespread growth in demand for construction so far this year,” said Ken … Read more

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May Construction Starts Rise 5 Percent

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NEW YORK, N.Y. – At a seasonally adjusted annual rate of $636.7 billion, new construction starts in May increased 5 percent from April, according to Dodge Data & Analytics. Much of the growth came from the non-building construction sector (public works and electric utilities), which was lifted by a $3.8-billion oil pipeline in the upper Midwest, as well as by seven power plant projects with a combined cost of $4.3 billion. Residential building edged up slightly in May, as multifamily housing bounced back from its subdued April performance. However, nonresidential building in May retreated, sliding for the second month in … Read more

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Construction Employment Declines or Stagnates Between May 2015, 2016

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Construction employment declined or was stagnant in 131, or 37 percent, of 358 metro areas between May 2015 and May 2016, according to a new analysis of federal employment data released by the Associated General Contractors of America. The data comes as years of underfunding have contributed to declining highway, transit and other public infrastructure just 60 years after President Eisenhower signed the first interstate highway act. The largest job losses from May 2015 to May 2016 were in Midland, Texas (-1,700 jobs, -7 percent), followed by Odessa, Texas (-1,300 jobs, -8 percent); Beaumont-Port Arthur, Texas (-1,100 jobs, -6 percent); … Read more

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