Construction Spending Rose in January from December, January 2021, Reports AGC

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Construction spending increased in January compared to both December and a year ago, with strong gains in private nonresidential and residential construction but mixed results for public spending, according to an analysis of federal spending data the Associated General Contractors of America. Association leaders urged Washington officials to speed the award of funds promised by the Bipartisan Infrastructure law. “Private nonresidential construction, especially for manufacturing plants, has rebounded sharply in recent months, while demand for housing remains strong,” said Ken Simonson, the association’s chief economist. “But public projects have yet to grow consistently.” Construction spending in January totaled $1.68 trillion … Read more

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Monthly Construction Input Prices Rise in January, Says ABC

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Construction input prices rose 3.5% in January compared to the previous month, according to an Associated Builders and Contractors analysis of the U.S. Bureau of Labor Statistics’ Producer Price Index data. Nonresidential construction input prices increased 3.1% for the month. Construction input prices are up 23.6% over the past 12 months, while nonresidential construction input prices rose 24.3%. Input prices for natural gas and unprocessed energy materials fell for the month by 26.1% and 4.7%, respectively. Crude petroleum prices increased 15.5% in January. All three energy subcategories are up significantly on a year-over-year basis. “While many economists expect inflation to … Read more

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Majority of Metro Areas Added Construction Jobs in 2021, Soaring Job Openings Indicate Labor Shortages Getting Worse

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Construction employment increased in nearly two out of three U.S. metro areas in 2021, according to an analysis by the Associated General Contractors of America of new government employment data. Yet association officials noted that labor shortages likely kept many firms from adding even more workers. “Construction employment topped year-earlier levels in almost two-thirds of metros for the past few months,” said Ken Simonson, the association’s chief economist. “But contractors in many areas say they would have hired even more workers if qualified candidates were available.” Job openings in construction totaled 273,000 at the end of December, an increase of … Read more

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Nonresidential Construction Spending Projected to Increase through 2023

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According to a new report from the American Institute of Architects, the nonresidential building sector is expected to see a healthy rebound through next year after failing to recover with the broader economy last year. The AIA’s Consensus Construction Forecast panel—comprising leading economic forecasters—expects spending on nonresidential building construction to increase by 5.4% in 2022, and accelerate to an additional 6.1% increase in 2023. With a 5% decline in construction spending on buildings last year, only retail and other commercial, industrial and healthcare facilities managed spending increases. This year, only the hotel, religious and public safety sectors are expected to … Read more

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Dodge Momentum Index Declines in December

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The Dodge Momentum Index fell 3% in December to 166.4 (2000=100), down from the revised November reading of 170.7. The momentum index, issued by Dodge Construction Network, is a monthly measure of the initial report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. In December, commercial planning fell 4%, and institutional planning slipped 1%. Despite these declines, 2021 was a banner year for the Dodge Momentum Index—despite the lingering risks of COVID-19 and low demand for some types of nonresidential buildings. Throughout the year, the overall momentum … Read more

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