Dodge Momentum Index Jumps in June

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NEW YORK, N.Y. – The Dodge Momentum Index rose a sharp 11.2 percent in June to 134.4, from its revised May reading of 120.8 (2000=100). The Dodge Momentum Index is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. The index rose in June as the result of a 14.6 percent increase in the institutional component and a 7.7 percent increase in the commercial component. The gain in commercial planning reports is a positive development since that component of […]

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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 […]

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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 […]

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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 […]

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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 […]

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