The U.S. construction industry added 20,000 jobs in November, with nonresidential construction contributing 4,900 of them, according to the Bureau of Labor Statistics preliminary estimate released Dec. 5. October’s overall construction estimate was revised downward from 12,000 to 7,000 net new jobs and nonresidential construction lost 2,100 jobs in October, after revisions. “Nonresidential construction added nearly 5,000 jobs in November and the outlook remains positive,” said Associated Builders and Contractors Chief Economist Anirban Basu. “It is important to note that the greatest constraint on nonresidential job growth may no longer be a lack of demand for construction services, but rather
Construction input prices fell again in November, down 0.8% for the month, according to the Dec. 12 producer price index (PPI) release by the U.S. Dept. of Labor. Prices have fallen in five of the past six months but still are 0.6% higher on a year-over-year basis. Inputs to nonresidential construction fell 1.1% and are unchanged from the same time last year. “Although there are times when deflation can be a reflection of declining demand for goods and services, the deflation happening now in an array of commodities should be viewed positively, both from the perspective of the broader economy
Two-thirds of the economic benefits and jobs created by federal highway and transit investment occur in nonconstruction sectors, according to a new analysis from IHS Inc., a global source of critical information and insight. The study also finds that every dollar invested through the federal Highway Trust Fund (HTF) in state highway, bridge and public transit infrastructure programs returns 74 cents in tax revenue. The report, “Transportation Infrastructure Investment: Macroeconomic and Industry Contribution of Federal Highway and Mass Transit Program,” reveals that 70% of the economic benefits, or value-added, of federal HTF investments in transportation improvements occur in non-construction sectors
The value of new construction starts settled back 4% in October to a seasonally adjusted annual rate of $589.8 billion, according to Dodge Data & Analytics (formerly McGraw Hill Construction). The decline followed the 10% increase reported in September, which was the strongest month for total construction starts so far in 2014. Both nonresidential building and nonbuilding construction lost momentum in October while residential building posted a moderate gain, given further growth for multifamily housing. During the first 10 months of 2014, total construction starts on an unadjusted basis were $475.8 billion, up 5% from the same period a year
The Associated Builders and Contractors’ Construction Backlog Indicator (CBI) reached a new all-time high during the third quarter of 2014 at 8.8 months, eclipsing the previous all-time high of 8.5 months in the second quarter. The third quarter backlog is 6.9% higher than the third quarter of 2013, and the continued growth of backlog during the last six months likely indicates that 2015 will be a strong year of recovery for the nation’s nonresidential construction industry.“Every region of the nation experienced expanding backlog during the third quarter and so did every industry segment,” said ABC Chief Economist Anirban Basu. “Recent
The Conference Board Consumer Confidence Index, which had rebounded in October, declined in November. The index now stands at 88.7 (1985=100), down from 94.1 in October. The Present Situation Index declined from 94.4 to 91.3, while the Expectations Index decreased sharply to 87.0 from 93.8 in October. Consumers’ assessment of present-day conditions was moderately less favorable in November than in October. The proportion saying business conditions are “good” decreased from 24.7% to 24.0%, while those claiming business conditions are “bad” increased from 21.3% to 22.4%. Consumers’ assessment of the job market was slightly less favorable, with the proportion stating jobs
The Denver Performing Arts Complex has an annual economic impact of more than $141 million and corresponds to approximately 2,500 jobs in Denver, according to an analysis recently completed by BBC Research & Consulting and released by the city and county of Denver. Denver Arts & Venues retained BBC to estimate the annual economic impact of the arts complex on the city and county of Denver and to help understand the nature of the DPAC’s impact on the local economy. The study will also be analyzed by Mayor Michael B. Hancock’s Executive Leadership Team as it works on a plan
Nonresidential construction spending bounced back in October, expanding 1% on a monthly basis and 4.3% year over year, according to a Dec. 2 release from the U.S. Census Bureau. Spending for the month totaled $611.8 billion on a seasonally adjusted, annualized basis. Additionally, the government revised the September spending figure up to $605.8 billion from $596.1 billion. “This month’s increase in nonresidential construction spending is far more consistent with the anecdotal information floating around the industry, which generally indicates that firms are becoming busier, and that backlog is expanding,” said Associated Builders and Contractors (ABC) Chief Economist Anirban Basu. “Although
October marked the fifth consecutive month when construction input prices failed to rise. Inputs to construction industries were down 0.9% for the month but expanded 1% on a year-over-year basis, according to a Nov. 17 producer price index (PPI) release from the U.S. Dept. of Labor. Inputs to nonresidential construction fell 1.1% for the month but are 0.5% higher than at the same time last year. “This deflation in an array of commodities should be viewed positively for the economy as well as for nonresidential construction,” said Associated Builders and Contractors Chief Economist Anirban Basu. “Deflation can be a reflection
The Colorado Dept. of Transportation’s executive director, Don Hunt, announced in early November his intent to leave the agency at the end of the year, as planned after the re-election of Gov. John Hickenlooper. Hunt’s tenure as director included his leadership during the 2013 flood recovery, innovation in transportation funding—which resulted in increased construction and improvement to Colorado roadways—improving maintenance and operations and the upcoming launch of CDOT’s new commuter bus service. He has served as the agency’s executive director for the past four years.“From the beginning, Don communicated that he would not be a two-term executive director. Don has
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