Paced by continued demand for projects such as new education and healthcare facilities, public safety and government buildings, the Architecture Billings Index (ABI) increased in June following fluctuations earlier this year. As a leading economic indicator of construction activity, the ABI reflects the approximate nine- to 12-month lead-time between architecture billings and construction spending. The American Institute of Architects reported the June ABI score was 55.7, up substantially from a mark of 51.9 in May. This score reflects an increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 63.4, up
Nonresidential construction spending was unchanged month-over-month in June but is up 11.5% on a year-over-year basis, according to a report released Aug. 3 by the U.S. Census Bureau. Nonresidential construction spending totaled $686.9 billion on a seasonally adjusted, annualized basis for the month and increased 9.8% during the year’s first half. “This release represents the largest year-over-year growth during a calendar year’s first six months since the Census Bureau began tracking construction spending in 2002 and serves as further proof of the recovery for nonresidential construction,” said Associated Builders and Contractors Chief Economist Anirban Basu.“Despite the lack of growth on
The Conference Board Consumer Confidence Index, which had improved in June, declined in July. The index now stands at 90.9 (1985=100), down from 99.8 in June. The Present Situation Index decreased moderately from 110.3 last month to 107.4 in July while the Expectations Index declined sharply to 79.9 from 92.8 in June. Consumers’ assessment of current conditions was somewhat less favorable in July. Those saying business conditions are “good” decreased from 26.1% to 24.2%. However, those claiming business conditions are “bad” was virtually unchanged at 17.9%. Consumers were slightly less positive about the job market. Those stating jobs are “plentiful”
New construction starts in June dropped 15% from the previous month to a seasonally adjusted annual rate of $620.2 billion, according to Dodge Data & Analytics. The decline followed an especially strong May, which benefitted from a $9.0-billion liquefied natural gas (LNG) export terminal in Texas being entered as a May start. By major sector, nonbuilding construction in June fell sharply as the result of a steep pullback by its electric utility and gas plant category while nonresidential building witnessed a less severe loss of momentum. Residential building in June was able to post a slight gain, helped by continued
Prices for inputs to construction industries expanded 0.2% in June after increasing 1.1% in May. Year-over-year prices were down 2.2% in June and prices have not increased on an annual basis for the past seven months. The last time this occurred was the third and fourth quarter of 2009 when the global economy was still reeling from the financial crisis; however, June’s year-over-year decline in construction input prices was the smallest so far in 2015. Prices of inputs to nonresidential construction industries rose 0.3% on a monthly basis, but are down 3.6% on a yearly basis.“The June figures do not
Led by growing demand for new schools, hospitals, cultural facilities and municipal buildings, the Architecture Billings Index (ABI) increased in May, following its second monthly drop this year. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lead time between architecture billings and construction spending.The American Institute of Architects reported the May ABI score was 51.9, up from a mark of 48.8 in April. This score reflects an increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 61.5, up from a reading of 60.1 the
The Colorado Dept. of Transportation, the High Performance Transportation Enterprise and the Colorado Bridge have received five statements of qualification (SOQ) from private partners interested in building the I-70 East Project, which extends from Brighton Boulevard to I-225. The SOQs were received from combined teams of construction and engineering firms, operators and equity investors. CDOT is pursuing a possible public-private partnership to deliver I-70 East, based on a design-build-finance-operate-maintain (DBFOM) model for finance and delivery of the project. An SOQ is a summary of a team’s experience in the industry and that of similar projects, which helps CDOT begin the
The Colorado Dept. of Transportation celebrated the June 22 completion of Phase 1 of the U.S. 36 Express Lanes Project. CDOT was joined in the grand opening ceremony by its partners, the Regional Transportation District, the High Performance Transportation Enterprise, the U.S. Dept. of Transportation and the Federal Highway Administration. Along with elected officials and many stakeholders, the agencies marked the end of major construction impacts and the beginning of multi-modal choices on the newly reconstructed highway that connects Denver to Boulder. Photo courtesy of CDOT Colorado Gov. John Hickenlooper (center) leads the June 22 ribbon cutting for Phase 1
The Conference Board’s Consumer Confidence Index, which had improved moderately in May, increased further in June. The index now stands at 101.4 (1985=100), up from 94.6 in May. The Present Situation Index increased from 107.1 last month to 111.6 in June, while the Expectations Index advanced to 94.6 from 86.2 in May. Consumers’ assessment of current conditions improved again in June. Those saying business conditions are “good” increased from 24.7% to 26.4%, while those claiming business conditions are “bad” was virtually unchanged at 17.8%. Consumers were also more positive about the job market. Those stating jobs are “plentiful” increased from
Through the first five months of 2015, nonresidential construction spending is having its second best year since the Census Bureau began tracking the metric in 2002. According to the bureau’s July 1 release, nonresidential construction spending increased 1.1% on a month-over-month basis and 8.1% on a year-over-year basis. It totals $669.6 billion on a seasonally adjusted, annualized basis. From January to May, nonresidential spending expanded by 7.1%; the only year in which the segment saw faster growth was 2007. Since then, growth over each year’s initial five months has averaged only 1.8%.Perhaps the most notable aspect of May’s release was
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