Construction spending in February topped year-ago totals by 5.8 percent as a double-digit increase in private construction offset a small drop in public sector spending, according to a new analysis of federal data released by the Associated General Contractors of America. The gains occurred despite a 1.1 percent decrease in spending from January to February and a dip of 0.8 percent the month before, based on revised data. “It is heartening to see that nearly all private residential and nonresidential segments exceeded their February 2011 levels this February and that the decline in public construction has moderated from the steep … Read more

WASHINGTON, D.C. — Led by the commercial sector, the Architecture Billings Index has remained in positive territory four months in a row. The ABI reflects the approximate nine- to 12-month lag time between architecture billings and construction spending. The American Institute of Architects reported the February ABI score was 51.0, following a mark of 50.9 in January. 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 63.4, up from mark of 61.2 the previous month and its highest reading since July 2007. “This … Read more

The cost of construction materials accelerated dramatically in February after moderating for several months, according to an analysis of producer price index figures released by the Associated General Contractors of America. As a result, construction firms will be forced to pay more for key materials even as demand for construction remains weak, association officials noted. “Prices for a wide range of construction inputs rose sharply in February, threatening to put contractors out of business and leave public projects underfunded unless materials can be ordered before prices jump further,” said Ken Simonson, the association's chief economist. “Contractors had finally begun to … Read more