ABC: Nonresidential Construction Spending Remains Near Record High

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National nonresidential construction spending decreased 0.3% in April, according to the latest Associated Builders and Contractors’ analysis of data published by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.20 trillion. Spending was down on a monthly basis in 10 of the 16 nonresidential subcategories. Private nonresidential spending decreased 0.3%, while public nonresidential construction spending was down 0.2% in April. “Nonresidential construction spending fell for the second consecutive month in April but remains just 0.3% below the all-time high established in February,” said ABC Chief Economist Anirban Basu. “An unprecedented increase in manufacturing construction spending has pushed overall nonresidential activity 31.9% higher over the past two years. Ongoing investment in industrial facilities as well as significant infrastructure-related outlays will keep nonresidential spending elevated despite the current expectation that interest … Read more

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AIA/Deltek Release Latest Architecture Billings Index

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Architecture firm billings remained soft entering into 2024, with an AIA/Deltek Architecture Billings Index score of 46.2 in January. Any score below 50 indicates decreasing business conditions. “This now marks the lengthiest period of declining billings since 2010, although it is reassuring that the pace of this decline is less rapid and the broader economy showed improvement in January,” said Kermit Baker, Ph.D., AIA Chief Economist. “Firms are seeing growth with inquiries into new projects and value of newly signed design contracts is holding steady, showing potential signs of interest from clients in new projects.” Business conditions remained weak at firms in all regions of the country except the Midwest, where modest … Read more

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Construction Sector Adds 9,000 Jobs in April

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The construction industry added 9,000 jobs in April — the fewest since August 2022 — as a downturn among residential remodelers and subcontractors undercut job gains at nonresidential construction firms, according to an analysis of new government data released by the Associated General Contractors of America. Association officials noted that demand for workers remains high among nonresidential firms, and they urged government officials to enhance support for career development and more employment-based immigration. “It appears that high interest rates are dragging down remodeling, homebuilding and apartment construction,” said Ken Simonson, the association’s chief economist. “But firms working on infrastructure, data … Read more

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ABC: Construction Input Prices Increase in April

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Construction input prices increased 0.5% in April compared to the previous month, according to the latest Associated Builders and Contractors’ analysis of U.S. Bureau of Labor Statistics Producer Price Index data. Nonresidential construction input prices increased .6% for the month. Prices increased in 2 of the 3 energy subcategories last month. Crude petroleum prices were up 10.6%, while unprocessed energy materials prices increased 8.2%. Natural gas prices were down slightly by 0.9%. “Construction input prices jumped half a percentage point higher in April and have increased 3.5% over the first four months of the year,” said ABC Chief Economist Anirban Basu. “While iron, steel, asphalt and gypsum product prices fell in April, oil and copper prices surged, driving the monthly increase. Rising input prices will put pressure … Read more

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2024 Construction Employment Changes by State

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In March, the U.S. construction industry added a whopping 39,000 jobs, roughly double the average pace over the past few years and defying expectations of an already stretched-thin labor force. However, the construction industry remains highly localized and the where is extremely important when it comes to getting any project over the finish line. The distribution of gains by state reveals much about the industry’s needs and direction. New York outperformed all other states by a significant margin, accounting for roughly a quarter of total job gains (+9,500). While this growth reversed a sharp downturn from last month, the state’s … Read more

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