Drop in April Construction Input Prices Could Help Stabilize Nonresidential Construction Sector, Says ABC

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Construction input prices fell 4.4% in April from the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics Producer Price Index data. Nonresidential construction input prices declined 4.2% for the month. Among 11 subcategories, nine experienced monthly price declines. All three energy subcategories considered in this release were lower in April, with crude petroleum down 48.9%, unprocessed energy materials down 27.5% and natural gas down 20.4%. The only subcategories that didn’t experience monthly price decreases were plumbing fixtures and fittings, which remained virtually unchanged, and concrete products, which increased 0.1%. “There has been … Read more

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Dodge Momentum Index Trips on COVID-19 in April

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The Dodge Momentum Index moved 6 % lower in April to 135.9 (2000=100) from the revised March reading of 144.5. The momentum index, issued by Dodge Data & Analytics, is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. Both components of the momentum index pulled back during the month – the commercial component fell 7.6%, while the institutional component dropped 3.2%. COVID-19 had a significant negative impact on the economy in April, touching virtually all sectors — including … Read more

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Nonresidential Construction Spending Falls Slightly in March, Says ABC

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National nonresidential construction spending fell 0.1% in March and is up 2.0% compared to the same time last year, according to an Associated Builders and Contractors analysis of data recently published by the U.S. Census Bureau. On a seasonally adjusted annualized basis, spending totaled $802.6 billion for the month. Among 16 nonresidential subcategories, 12 experienced a decline in spending on a monthly basis. Private nonresidential spending fell 1.3% from February, while public nonresidential construction spending increased 1.6%. “Today’s data release answers precious few questions,” said ABC Chief Economist Anirban Basu. “The great debate has been whether the combination of pre-existing … Read more

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Construction Employment Declines in 99 Metro Areas March 2019-March 2020, Industry Officials Call for New Funding, Says AGC

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Construction employment declined in 99 out of 358 metro areas from March 2019 to last month as the coronavirus pandemic triggered the first shutdown orders and project cancellations, according to an analysis released by the Associated General Contractors of America. Association officials urged federal and state officials to boost investments in infrastructure to help put more people to work amid rising unemployment levels.   “These new figures foreshadow even larger declines in construction employment throughout the country as the pandemic’s economic damage grows more severe,” said Ken Simonson, the association’s chief economist. “Unfortunately, the data for April and later months … Read more

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New Monthly Job Loss Data Foreshadows More Layoffs Amid Project Cancellations, State Cutbacks, Reports AGC

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Construction employment declined in 20 states and D.C. in March, aligning with the results of a recent survey by the Associated General Contractors of America that found growing layoffs amid new project cancellations and state funding constraints. Association officials warned that these cancellations mean massive job losses are likely to occur soon in even more states unless Congress helps cover rapidly declining state revenues, adds funding for Paycheck Protection Program loans and takes other measures to help the industry recover. “While construction employment declined in many parts of the country last month, far more states, local governments and project owners … Read more

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