WASHINGTON, D.C. — Continuing the positive momentum of a nearly three-point bump in October, the Architecture Billings Index reached its first positive mark since August. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to 12-month lag time between architecture billings and construction spending. The American Institute of Architects reported the November ABI score was 52.0, following a score of 49.4 in October. This score reflects an overall increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 65.0, up dramatically from a reading … Read more

PROVIDENCE, R.I. — Gilbane Building Company announced the publication of the Winter 2011 edition of Construction Economics — Market Conditions in Construction. Based on economic data, construction starts and material cost trends, this free report projects the recovery of the construction market will lag behind the overall economic recovery and will take much longer due to the severity of current conditions. Nevertheless, some critical indicators are illustrating a positive trend. “New construction starts have been strong four of the last five months, construction spending has improved throughout the year, and industrial production related to construction materials is up five months … Read more

The amount contractors pay for a range of key construction materials edged down 0.1 percent in November but climbed 6.2 percent from a year earlier, outstripping the increase in contractors" bid prices for finished buildings, according to an analysis of producer price index figures released by the Associated General Contractors of America. Officials with the construction association warned that the cost squeeze on contractors, combined with declining public sector investments in construction, may drive many contractors out of business. “Price increases have moderated or even reversed direction at the moment for essential construction materials but prices are likely to increase … Read more

Construction spending increased for the third straight month in October as private activity strengthened while public spending shrank, the Associated General Contractors of America reported in an analysis of new Census Bureau data. Association officials cautioned that further declines in public sector activity may soon swamp gains in homebuilding and private nonresidential investment. “The apparent stability in construction spending data is masking conflicting trends,” said the association's chief economist, Ken Simonson. “On one hand, private investments in construction are slowly accelerating, while public sector investments are declining at an even faster rate.” Simonson noted that total construction spending ticked up … Read more