Construction Employment Increases, Exceeds Previous Highs

Construction employment expanded in 220 metro areas, declined in 70 and was stagnant in 49 between April 2013 and April 2014, according to a new analysis of federal employment data released by the Associated General Contractors of America. Association officials noted that federal spending cutbacks on government facilities and Hurricane Sandy reconstruction were contributing to job losses around Washington, D.C. and New Jersey. “Construction employment appears to be rebounding in many parts of the country,” said Ken Simonson, the association’s chief economist. “Declines in federal spending likely depressed construction employment near Washington, while the aftermath of Hurricane Sandy may be … Read more

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Contraction in Architecture Billings Index Continues

WASHINGTON, D.C. — The Architecture Billings Index has reverted into negative territory for the last two months. As a leading economic indicator of construction activity, the ABI reflects the approximate nine- to twelve-month lead time between architecture billings and construction spending. The American Institute of Architects reported the March ABI score was 49.6, up slightly from a mark of 48.8 in March. This score reflects a decrease in design activity (any score above 50 indicates an increase in billings). The new projects inquiry index was 59.1, up from the reading of 57.9 the previous month. The AIA has added a … Read more

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Nonresidential Construction Index Continues to Grow

NRCI = 65.8 RALEIGH, N.C. — FMI announces the release of the 2014 Second Quarter Nonresidential Construction Index report. The NRCI shows slight improvement of a 0.9 point increase from Q1 and a 5.7 point increase from Q2 2013. Although growth continues, it is beginning to slow indicating that the economy still holds a lingering recession mentality. The largest repercussion of this mindset is that it keeps companies from investing, banks from lending and consumers from spending. Thus, the pressure to keep prices low continues along with the need for greater profitability, leading to two key challenges: How to improve … Read more

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Construction Unemployment Rate Declines, Reports AGC

The unemployment rate in construction dropped to the lowest April level in seven years as contractors added 32,000 workers to payrolls in April, bringing industry employment to 6.0 million, the highest level since June 2009, according to an analysis of new government data by the Associated General Contractors of America. Association officials warned that it is essential to revive and expand training opportunities before the industry runs short of workers. “It is heartening that all categories of construction employers added workers, not only in April but over the past 12 months,” said Ken Simonson, the association’s chief economist. “Moreover, contractors … Read more

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Construction Spending Edges Higher, Public Outlays Drop

Total construction spending remained in a holding pattern in March as strong gains in apartment construction and modest growth in homebuilding and private nonresidential activity offset falling public outlays, according to an analysis of new Census Bureau data by the Associated General Contractors of America. Association officials noted that the construction spending figures may get dramatically worse unless public officials act urgently to maintain federal highway funding. “Overall construction spending has increased from a year ago but has stayed in a narrow range since December,” said Ken Simonson, the association’s chief economist. “It is encouraging that spending remained level despite … Read more

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