Construction Spending Reaches Record High

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Construction spending reached a record level of $1.309 trillion in May as monthly increases in residential and public investment outweighed a decline in private nonresidential outlays, according to an analysis of new government data by the Associated General Contractors of America. Association officials warned, however, that continued labor shortages and rising materials costs threaten future growth in demand. “Public construction spending has increased strongly for the past nine months and is now at the highest level since 2010, led by a rebound in infrastructure investment,” said Ken Simonson, the association’s chief economist. “Single-family home building is continuing to expand, while … Read more

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May Construction Unemployment Rates Down Year Over Year in 45 States, Says ABC

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WASHINGTON, D.C. – Estimated May construction unemployment rates fell in 45 states on a year-over-year basis, rose in four states and were unchanged in one state (Alabama), according to an analysis of U.S. Bureau of Labor Statistics data released by Associated Builders and Contractors. The May 2018 not seasonally adjusted  national construction unemployment rate fell 0.9 percent from May 2017 to 4.4 percent, the lowest May rate on record. At the same time, the construction industry employed 291,000 more workers nationally than in May 2017. “May proved to be an excellent month for construction employment, despite the ongoing shortage of … Read more

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ABC’s Construction Confidence Index Surges in Q1

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WASHINGTON, D.C. – Despite ongoing concerns regarding labor force availability and rising interest rates, and emerging concerns regarding tariffs and construction materials prices, construction contractors emerged from the first quarter of 2018 with tremendous confidence, according to the Associated Builders and Contractors Construction Confidence Index. Each of the three indices—sales, profit margins and staffing levels—increased during the first quarter and remain well above the threshold reading of 50. The CCI for sales expectations increased from 67.1 to 72.2 during the first quarter of 2018 The CCI for profit margin expectations increased from 60.7 to 63.4 The CCI for staffing levels … Read more

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Dodge Momentum Index Inches Up in May

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The Dodge Momentum Index eked out a small gain in May, moving 1.8 percent higher to 167.8 (2000=100) from the revised April reading of 164.9. The momentum index 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. May’s gain was the result of a 4.7 percent increase by the commercial component of the momentum index, while the institutional component fell 2.4 percent. The momentum index has posted solid gains through the first five months of 2018, rising 19 … Read more

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Construction Costs Soar in May, Outpace Contractor Pricing

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Construction costs accelerated again in May, with steep increases for a wide range of building and road materials, including many that are subject to tariffs that could drive prices still higher, according to an analysis by the Associated General Contractors of America of new Labor Department data. Association officials say that the construction industry will bear a heavy share of the tariffs’ costs. “Prices jumped at double-digit annual rates for metals, lumber and plywood, and diesel fuel, while ready-mixed concrete, asphalt paving and roofing materials also had unusually large increases,” said the association’s chief economist, Ken Simonson. “The cost of … Read more

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