Analysis of New April Producer Price Index Shows Increasing Pressure on Contractors to Raise Prices to Survive, Construction Economist Notes Construction contractors continue to be squeezed between rising materials costs and falling output prices according to a new analysis of materials costs conducted by the Associated General Contractors of America. The association noted that even as the producer price index leapt in April for key construction components, the amount contractors charge for construction services remains depressed. “Paying more to earn less is not a sustainable business model,” said Ken Simonson, chief economist for the Associated General Contractors of America. “Contractors … Read more

Highest reading from architects since August 2008 Washington, D.C. — On the heels of a more than two point gain in February, the Architecture Billings Index (ABI) was up again in March. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the March ABI rating was 46.1, up from a reading of 44.8 the previous month. Though this score reflects a continued decline in demand for design services (any score above 50 indicates an increase in billings), … Read more

Stimulus package having limited impact because funding not yet reaching intended recipients Washington, D.C. — Following a drop of nearly three points, the Architecture Billings Index (ABI) nudged up almost two points in February. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the February ABI rating was 44.8, up from a reading of 42.5 in January. This score indicates a continued decline in demand for design services (any score above 50 indicates an increase in billings). … Read more