Construction spending inched up in March 2012 to an annualized rate of $808 billion, up 0.1 percent compared to the previous month and is now 6 percent above year ago levels, according to a new analysis of federal data released by the Associated General Contractors of America. The overall gains mask divergent trends however, as public sector construction activity continues to decline while private sector demand for new construction continues to strengthen. “Private and public sector demand for construction appear to be heading along two distinct directions,” said Ken Simonson, the association's chief economist. “While it is great to see … Read more

WASHINGTON, D.C. —The commercial sector continues to lead the Architecture Billings Index, which has remained in positive territory for the fifth consecutive month. As a leading economic indicator of construction activity, the ABI reflects the approximate nine- 12-month lag time between architecture billings and construction spending. The American Institute of Architects reported the March ABI score was 50.4, following a mark of 51.0 in February. 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 56.6, down from mark of 63.4 the previous month. … Read more

The cost of construction materials jumped in March, even as the amount contractors charge to complete projects remained stagnant, according to an analysis of producer price index figures released by the Associated General Contractors of America. Association officials noted the spike in materials prices continues despite relatively weak overall demand for construction, and cautioned that current market conditions could force some firms out of business. “Price shocks for a number of key construction materials may have caught contractors by surprise in a period when overall inflation remained very moderate,” said Ken Simonson, the association's chief economist. “Even though the increases … Read more