U.S. Non-Residential Construction Retreats 6.9% in December

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Non-residential construction starts declined 6.9 percent from November to December in the U.S., according to a new report from construction data provider CMD. December’s new construction total, $22.2 billion, was 7 percent lower than December 2014. The retreat in construction starts was only slightly higher than the construction activity typical of November to December. However, compared to the five-year average for December from 2010 to 2014, starts increased 9.2 percent. Among the three major subcategories of non-residential construction, commercial and heavy engineering/civil activity decreased 4 and 6.2 percent respectively, but by far the most dramatic change from November to December … Read more

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Architecture Billings Index Ends Year on Positive Note

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WASHINGTON, D.C. – There were a few occasions where demand for design services decreased from a month-to-month basis in 2015, but the Architecture Billings Index concluded the year in positive terrain and was so in 8-12 months of the year. 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 December ABI score was 50.9, up from the mark of 49.3 in the previous month. This score reflects a slight increase in design services (any score above 50 indicates an increase … Read more

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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

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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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