Construction spending in July maintained consistent year-over-year growth despite a pullback from the June peak, according to an analysis of new federal data released by the Associated General Contractors of America. Association officials said they expect the disparity between private and public construction to persist unless Washington acts to fix infrastructure funding challenges and pass long-delayed measures. “The July spending numbers send a very mixed message,” said Ken Simonson, the association's chief economist. “Construction of new homes, apartments and most private nonresidential structures appears to be driving gains in construction activity even as the public sector continues to drag on … Read more

RALEIGH, N.C. — FMI announces the release of its Third Quarter Nonresidential Construction Index Report. Plunging 5 points, the index is back to Q2-2010 levels. Notably, confidence in the economy by panelists took a huge hit, dropping 24.7 points. “Beware of the upturn,” is the sentiment expressed by a number of panelists. They raise concerns that too many contractors have been taking on too much low-bid work just to keep their backlogs full. The result is businesses are becoming unable to finance ongoing losses. On the rise is the number of contractors participating in self-funded projects as a financing partner … Read more

WASHINGTON, D.C. — The Architecture Billings Index pointed to a slower decline in July in design activity at U.S. architecture firms. As a leading economic indicator of construction activity, the ABI reflects the approximate 9- to 12-month lag time between architecture billings and construction spending. The American Institute of Architects reported the July ABI score was 48.7, up considerably from the mark of 45.9 in June. This score reflects a decrease in demand for design services (any score below50 indicates a decline in billings). The new projects inquiry index was 56.3, up from mark of 54.4 the previous month. “Even … Read more

The cost of key construction materials dropped for the third consecutive month in July, pushing down year-over-year prices for the first time since 2009, according to an analysis of producer price index figures released by the Associated General Contractors of America. However, association officials warned that recent spikes in diesel fuel and steel prices may drive up the cost of construction again, and urged lawmakers to invest in needed infrastructure projects promptly while prices remain low. “This price decline may be the last, given the large jumps in diesel fuel and steel prices that have occurred or been announced since … Read more