Stronger gains for commercial real estate sector expected in 2012WASHINGTON DC — A slow recovery period is projected for the nonresidential construction industry this year, and 2011 spending levels are not anticipated to be enough to show growth over 2010 figures.   While activity for institutional projects should hover near 2010 levels, there is likely to be a modest decline in commercial construction.   Overall nonresidential construction spending is expected to decrease by two percent in 2011, with 2012 seeing an increase of five percent in inflation adjusted terms.   These are highlights from the American Institute of Architects (AIA) … Read more

Three out of past four months have seen positive business conditions WASHINGTON D.C..— On the heels of its highest mark since 2007, the Architecture Billings Index (ABI) jumped more than two points in December.   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 December ABI score was 54.2, up from a reading of 52.0 the previous month.   This score reflects an increase in demand for design services (any score above 50 indicates an … Read more

Latest Producer Price Index Figures Show Double-Digit Hikes in 2010 for Copper, Steel, Aluminum, Diesel, Even As Prices Contractors Charge for Finished Structures Remain Flat Construction firms are facing increasing pressure in December as nearly every material used by contractors rose in price, while bid prices for new buildings remained flat, according to an analysis of December producer price index figures released today by the Associated General Contractors of America. Association officials warned that the price squeeze on contractors is likely to intensify in 2011 as global demand for construction materials grows and domestic demand for construction services remains weak. … Read more