Report Reveals Commercial Construction Index Drops Amid Coronavirus Pandemic

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The recently released Q2 2020 USG Corporation + U.S. Chamber of Commerce Commercial Construction Index plunged from 74 in Q1 to 56 in Q2. Two of the index’s three main indicators—confidence in new business and revenue expectations—both fell 26 points, to 50 and 44, respectively, revealing the severe impact of the coronavirus pandemic on the construction industry. However, the third indicator, backlog, dropped only a modest three points, remaining consistent with the first half of 2018. Survey results were largely collected in the month of April, at the height of shutdown restrictions. The overall drop in the index stemmed in part from the fact … Read more

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Construction Spending Declines 2.1%, Private Work Outweighs Public Pickup, Says AGC

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Construction spending declined for the third month in a row in May as a sharp slowdown in private projects more than offset a rise in public work, according to an analysis by the Associated General Contractors of America of government data. Association officials warned that the pickup in public projects is likely to reverse soon unless the federal government acts quickly to invest in needed infrastructure and shore up crumbling state and local budgets.   “Three short-lived factors may have boosted construction spending in May: emergency healthcare projects, acceleration of highway work to make use of the drop in road … Read more

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Construction Input Prices Rise in May, Says ABC

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Construction input prices rose 0.8% in May compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data released recently. Nonresidential construction input prices rose by 0.8% for the month as well. Of the 11 subcategories, only three experienced monthly decreases, with the largest decrease in steel mill products, which fell 3.1% in May. The rise in prices was driven primarily by the three energy subcategories, which experienced significant increases over the previous month. Crude petroleum was up 41.6%, while natural gas and unprocessed energy materials were up … Read more

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New Data Shows Signs of Construction Recovery, Need for Federal Assistance

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A new survey by the Associated General Contractors of America, and data from construction technology firm Procore, show that construction activity is returning to pre-coronavirus levels in many parts of the country and some firms are adding workers.The new economic data, however, also shows some future projects are being canceled and many others are being delayed by supply chain issues and labor shortages, underscoring the need for additional federal recovery measures, association officials noted. “Many of the immediate economic impacts of the coronavirus have passed and, as a result, activity and hiring are up, a bit,” said Ken Simonson, the … Read more

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AGC Reports Construction Jobs Rise by 464K, Remain Below Recent Peak

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Construction employment rebounded by 464,000 jobs in May, but the total remained 596,000 below the latest peak in February and the industry’s 12.7% unemployment rate was the highest for May since 2012, according to an analysis by the Associated General Contractors of America of government data. Association officials cautioned that the future job losses are likely as temporary federal support programs end, state and local officials deal with tighter budgets and private sector demand declines later this year.   “The huge pickup in construction employment in May is good news and probably reflects the industry’s widespread receipt of Paycheck Protection … Read more

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