ABC Provides Mid-Year Economic Outlook for Nonresidential Construction

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More than 10 years after the end of the most severe financial crisis since the Great Depression, the U.S. economy is again making history by continuing its longest-ever expansion. Nevertheless, emerging weakness in business investment has been hinting at softening outlays, giving commercial and industrial construction contractors cause for concern, according to a mid-year economic outlook by Anirban Basu, chief economist of Associated Builders and Contractors. “Given that every expansion in U.S. history has ended in recession, leaders of construction firms are rightly wondering when the record-setting expansion will end,” said Basu. “Looking at conditions on the ground, it likely … Read more

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Construction Contractors Lose Confidence in Q4, Remain Upbeat Heading into 2019

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Construction industry leaders remained predominantly confident about the nonresidential construction sector’s prospects during the final quarter of 2018, according to the latest Construction Confidence Index released by Associated Builders and Contractors. Sales expectations remained especially upbeat during the fourth quarter, though the proportion of contractors anticipating significant sales increases in the following two quarters dipped by five percentage points. Despite that, more than 67 percent of contractors projected rising sales, while slightly less than 12 percent expected sales to decline. Just over 50 percent of contractors anticipate their profit margins to grow in the first half of 2019, yet only … Read more

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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 … Read more

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Construction Input Prices Continue to Fall in December, Says ABC

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Construction input prices declined 1.7 percent in December on a month-over-month basis, yet are 3.5 percent higher than the same time last year, according to a recent Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics data. In December, nonresidential construction prices fell 1.6 percent but are up 4.1 percent compared to one year ago. Among 11 subcategories monitored in the data, six declined in price in last month, with the crude petroleum category registering the largest decrease at 3.7 percent and 11.1 percent year-over-year. The decline in input prices occurred despite a massive run-up in natural gas … Read more

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Contractors Lose Confidence in Q3 but Remain Upbeat

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WASHINGTON, D.C. — While construction industry leaders remained confident in the third quarter of 2018, optimism slipped relative to the second quarter, according to the latest Construction Confidence Index released by Associated Builders and Contractors. Approximately three in four construction firms expect that sales will continue to rise over the next six months and closer to one in 10 expect sales to decline over the next two quarters. Though many firms expect to become even busier, fewer than six in 10 contractors expect profit margins to increase, a reflection of rising human capital, materials prices and other input costs. Despite … Read more

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