Nonresidential Construction Spending Remains Flat in October, Residential Construction Expands, says AGC

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The construction industry’s fortunes continued to diverge in October, as residential construction expanded again while nonresidential construction remained largely unchanged from a month ago and is down compared to last year, according to an analysis of new federal construction spending data by the Associated General Contractors of America. Association officials said that demand for nonresidential construction is being hit by private sector worries about the coronavirus, tighter state and local budgets and the lack of new federal pandemic relief measures.   “The October spending report shows private nonresidential construction is continuing to slide,” said Ken Simonson, the association’s chief economist. … Read more

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Dodge Momentum Index Posts Dip in October

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The Dodge Momentum Index fell 1.8% in October to 127.5 (2000=100) from the revised September reading of 129.8. 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. The commercial component of the momentum index lost 4.4% over the month, but the institutional component gained 3.3%. The momentum index has struggled to make consistent gains since passing its post-pandemic low in June. Economic growth has slowed over the past few months, … Read more

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Marcum Construction Index Shows Industry Holding Steady in COVID-19 Economy

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The Marcum Commercial Construction Index for the second quarter of 2020 reports the industry is holding relatively well in the face of the COVID-19-driven recession. Construction employment has rebounded since plummeting in March and April, and the industry’s unemployment rate stands at 8.9%, below the 10.2% rate observed across all industries. The index is produced by Marcum’s National Construction Services group. “The data indicate that construction has recovered faster than any other major economic segment. Over the three-month period ending in July, the industry recovered 59% of the jobs lost in March and April,” wrote Anirban Basu, author of the … 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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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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