Construction spending inched down less than 0.1 percent in January, following a large upward revision in December and November, according to a new analysis of federal data released by the Associated General Contractors of America. All forms of residential construction did well for the month and year-over-year, while private nonresidential spending was mixed and public construction declined amid continued congressional delays in passing a host of long-term infrastructure and tax measures. “The strong gains in single-family homebuilding in December and January probably have a lot more to do with the unusually mild weather compared to year-ago conditions, than surging demand … Read more

WASHINGTON, D.C. — On the heels of consecutive months of strengthening business conditions, the Architecture Billings Index has reached positive territory three months in a row. 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 January ABI score was 50.9, following a mark of 51.0 in December. This score reflects a slight increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 61.2, down just a notch … Read more

The cost of construction materials is showing signs of accelerating after moderating in January, according to an analysis of producer price index figures and recent market information released by the Associated General Contractors of America. Ongoing price increases underscore the urgency of funding public construction projects promptly, association officials said. “Cost increases have slowed in recent months but haven"t disappeared,” said Ken Simonson, the association's chief economist. “In fact, today's producer price index report may be the low point, as manufacturers and commodities markets are signaling that bigger increases may be just around the bend.” Simonson noted that the price … Read more