Construction Costs Increase as Markets Remain Active

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According to Turner Construction Company’s quarterly Building Cost Index, construction activity during the Fourth Quarter 2018 has remained at a high level across the United States. Turner Construction Company announced that the Fourth Quarter 2018 Turner Building Cost Index—which measures costs in the non-residential building construction market in the United States—has increased to a value of 1120. This represents a 1.36 percent quarterly increase and 5.86 percent yearly increase from the Third Quarter 2018 and Fourth Quarter 2017, respectively. “For the Fourth Quarter, the escalation on raw and fabricated materials continue,” said Attilio Rivetti, the Turner vice president responsible for […]

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Dodge Momentum Index Recovers in January

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The Dodge Momentum Index rose 4.7 percent in January to 157.7 (2000=100) from the revised December reading of 150.6. 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. January’s increase reflected similar gains for the two components of the momentum index – institutional building, up 5.0 percent; and commercial building, up 4.6 percent. The January increase essentially reverses December’s decline, and brings the overall momentum index back to November’s […]

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Nonresidential Building Spending to Grow through 2019, Cautious Outlook for 2020

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WASHINGTON, D.C. – Nonresidential construction spending on buildings is projected to grow by 4.4 percent through 2019, according to a new consensus forecast from The American Institute of Architects. Healthy gains in the industrial and institutional building sectors have bolstered growth projections for 2019; however, the AIA Consensus Construction Forecast Panel—consisting of leading economic forecasters—is suggesting that a broader economic downturn may be materializing over the next 12-24 months. Learn more about this Consensus Construction Forecast online. “Though the economy has been performing very well recently, trends in business confidence scores are red flags that suggest a slowdown is likely […]

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New Construction Starts in December Decline 10%

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NEW YORK, N.Y. – New construction starts in December fell 10 percent to a seasonally adjusted annual rate of $708.9 billion, continuing to retreat after November’s 7 percent slide, according to Dodge Data & Analytics. The December downturn reflected diminished activity for each of the three main construction sectors. Nonresidential building dropped 14 percent, as its commercial building segment lost momentum following its heightened November amount. Residential building pulled back 8 percent, due to reduced activity in December for both single-family and multifamily housing. Nonbuilding construction decreased 9 percent, with a steep plunge by the electric utility/gas plant category that […]

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Construction Employment Increases in December 2018 in 43 States, D.C.

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Forty-three states and the District of Columbia added construction jobs between December 2017 and December 2018, while 36 states added construction jobs between November and December, according to an analysis by the Associated General Contractors of America of Labor Department data. Association officials cautioned that growing labor shortages and trade disputes were leading to higher construction costs. “The construction industry ended 2018 in good shape in nearly all parts of the country, and contractors are optimistic about the volume of work available in 2019,” stated chief economist Ken Simonson. “But finding workers to execute those projects is likely to be […]

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