Construction Spending Declines in November, Reports AGC

Construction spending edged down in November but outlays for the year remained on track for a modest increase over 2013 totals, according to a recent analysis by the Associated General Contractors of America. Association officials said the new spending figures come as the group’s members prepare a new push for action on a series of federal infrastructure programs, including funding for highway and transit upgrades and to maintain clean water systems across the country. “Today’s figures continue the seesaw pattern that has characterized residential, private nonresidential and public construction throughout 2014,” said Ken Simonson, the association’s chief economist. “Overall construction … Read more

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Construction Employment Increases as Demand Rebounds, Labor Shortages Cause Concern

Construction employment expanded in 224 metro areas, declined in 64 and was stagnant in 51 between November 2013 and November 2014, according to a new analysis of federal employment data recently released by the Associated General Contractors of America. Association officials said contractors in many parts of the country were benefitting from growing demand, yet labor shortages threaten to undermine the sector’s recovery. “It is good news that construction employment is now rising in two-thirds of the nation’s metro areas,” said Ken Simonson, chief economist for the association. “But now that the unemployment rate for construction workers has fallen to … Read more

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Construction Employment Increases Between October, November

Construction firms added jobs in 38 states and the District of Columbia between November 2013 and November 2014 while construction employment increased in 26 states and D.C. between October and November, according to a recent analysis of Labor Department data by the Associated General Contractors of America. Association officials noted that the list of states gaining jobs has varied significantly from month to month as the market remains extremely variable. “Construction job growth remains positive overall but volatile,” said Ken Simonson, the association’s chief economist. “Although more than three-quarters of states have added construction jobs from year-earlier levels throughout 2014, … Read more

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Demand Softens, Outlook for Architecture Billings Index Remains Positive

WASHINGTON, D.C. — Buoyed by sustained demand for apartments and condominiums, coupled with state and local governments moving ahead with delayed public projects, the Architecture Billings Index has been positive for seven consecutive months. 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 November ABI score was 50.9, down from a mark of 53.7 in October. This score reflects a slight increase in design activity (any score above 50 indicates an increase in billings). The new projects inquiry index was … Read more

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Construction Firms Add 20,000 Jobs Last Month

Construction industry employment hit a new five-year high in November as the sector added 20,000 jobs and its unemployment rate fell to 7.5 percent, the lowest rate for November in seven years, according to an analysis by the Associated General Contractors of America. Association officials cautioned, however, that the latest figures include signs that demand for public-sector and non-residential construction may be weakening. “November was another good month overall for construction workers and businesses,” said Ken Simonson, the association’s chief economist. “Yet the recent declines in public works and nonresidential building construction employment may indicate some underlying weakness in the … Read more

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