The amount contractors pay for a range of key construction materials edged down 0.1 percent in November but climbed 6.2 percent from a year earlier, outstripping the increase in contractors" bid prices for finished buildings, according to an analysis of producer price index figures released by the Associated General Contractors of America. Officials with the construction association warned that the cost squeeze on contractors, combined with declining public sector investments in construction, may drive many contractors out of business. “Price increases have moderated or even reversed direction at the moment for essential construction materials but prices are likely to increase … Read more

Construction spending increased for the third straight month in October as private activity strengthened while public spending shrank, the Associated General Contractors of America reported in an analysis of new Census Bureau data. Association officials cautioned that further declines in public sector activity may soon swamp gains in homebuilding and private nonresidential investment. “The apparent stability in construction spending data is masking conflicting trends,” said the association's chief economist, Ken Simonson. “On one hand, private investments in construction are slowly accelerating, while public sector investments are declining at an even faster rate.” Simonson noted that total construction spending ticked up … Read more

RALEIGH, N.C. —FMI (www.fminet.com), a provider of management consulting and investment banking to the engineering and construction industry, released its Nonresidential Construction Index report for the fourth quarter of 2011. The NRCI slipped from 52.4 to a barely positive 50.3 this quarter. While the stock market continues its gyrations from news surrounding the future of the Euro countries, the NRCI has managed glacial growth, chugging along just above average for the last two years, average being little to no growth. The NRCI dropping to 50.3 this quarter is less a downward trend than a continuation of moderate growth. Moderate growth … Read more