As it did in October, the Credit Managers Index (CMI) from the National Association of Credit Management slipped again in December, from 55.2 to 54.9. The most dramatic movement was in sales, which plummeted to 56.7, a low last seen in December 2009 and almost a full point lower than in October 2012. According to NACM, the decline reinforces the notion that business stalled at the end of last year in anticipation of what could have happened with spending and taxation. There was some cautious optimism last fall, but that optimism has evaporated, the association said.The other favorable factors did
The Equipment Leasing and Finance Association (ELFA), which reports economic activity from 25 companies representing a cross-section of the $725-billion equipment finance sector, showed that the industry’s overall new business volume for November was $6.4 billion, up 3% from volume of $6.2 billion in the same period in 2011. The companies’ volume was down 16% from the previous month, and their year-to-date cumulative new business volume increased 15%. Receivables over 30 days increased for the first time in six months to 2.0%, up from 1.7% in October, and they were unchanged when compared to the same period in 2011.Charge-offs were up
After the board of directors for Denver’s Regional Transportation District approved moving forward with a FasTracks Internal Savings Account to help fund FasTracks projects that are not fully funded, RTD staff will begin the process of implementing the plan. The savings account is comprised of eight items that are expected to generate nearly $300 million by 2017. The funds would be used to build the North Metro Line to at least 72nd Avenue in Westminster and complete RTD’s commitment on the U.S. 36 Bus Rapid Transit project, a partnership with the Colorado Dept. of Transportation. The RTD board has been
Colorado business leaders’ optimism is modest going into the first quarter of 2013, with uncertainty surrounding the country’s political and economic environments, according to the most recent quarterly Leeds Business Confidence Index, or LBCI, released Jan. 2 by the University of Colorado Boulder’s Leeds School of Business. For the first quarter of 2013, the LBCI, conducted by the Leeds School’s Business Research Division, posted an overall confidence reading of 51.3, down slightly from 51.6 in the fourth quarter of 2012. A reading greater than the neutral mark of 50 indicates positive expectations and one less than 50 indicates negative expectations
Construction spending dipped from October to November, but resolution of the uncertainty regarding federal taxes for 2013 should unleash more private construction investment, according to an analysis of new federal data recently released by the Associated General Contractors of America. Association officials warned, however, that unresolved issues about federal construction spending, including storm relief for northeastern states, will hold down public construction spending. “Preliminary data from the Census Bureau for November shows overall construction spending slipped 0.3% from October’s total after seven months of steady gains,” said Ken Simonson, the association’s chief economist. “The more significant comparison, however, is with
At a seasonally adjusted annual rate of $421.3 billion, new construction starts in November fell 5% from the previous month, according to McGraw-Hill Construction, a division of The McGraw-Hill Cos. The downturn came as the result of decreased activity for public works, following this sector’s elevated amount in October. Meanwhile, both nonresidential building and housing registered modest growth in November. During the first 11 months of 2012, total construction starts on an unadjusted basis were reported at $424.4 billion, up 3% compared to the same period a year ago.The November data lowered the Dodge Index to 89 (2000=100), down from
Billings at architecture firms across the country continue to increase. As a leading economic indicator of construction activity, the Architecture Billings Index (ABI) reflects the approximate nine- to 12-month lag time between architecture billings and construction spending. The American Institute of Architects reported the November ABI score was 53.2, up from the mark of 52.8 in October. This score reflects an increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 59.6, up slightly from the 59.4 mark of the previous month. “These are the strongest business conditions we have
A new partnership between the University of Colorado Boulder’s Leeds School of Business and the College of Engineering and Applied Science, spurred by a gift, will have positive implications for the construction and real estate industries. The gift of $285,000, from alumnus Dan Ivanoff and his wife Laurie, supports the creation of a construction management track within the MBA program in the Leeds School, as well as opens the door for graduate construction engineering and management students to take associated business classes. The new program is slated to begin in fall 2013. “The Ivanoff gift creates a powerful collaboration and cross-campus
Careful construction industry people (and others) may want to make the following New Year's resolutions for 2013 (perhaps to help avoid attorneys’ fees): • Resolve to make all reasonable efforts to settle disputes directly with the other party—and leave your attorney out of it;• Resolve to carefully document every event that might give rise to a claim or dispute through letters, archived e-mails, meeting notes and communications, dated photographs and, if applicable, videos, Tweets and other social media.• Resolve to watch out for deadlines such as completion dates, times for asserting mechanic’s liens or verified claims or statutes of limitations,
Construction employment declined by 20,000 jobs in November while the industry's unemployment rate hit 12.2%, according to an analysis of new federal data recently released by the Associated General Contractors of America. The construction employment figures likely reflect the fact many contractors have already cut staff and delayed hiring new employees because of the threat of the “fiscal cliff,” according to results of a survey of member firms the association also released by AGC. “It is discouraging that construction employment is still struggling after more three years of expansion in the overall economy,” said Ken Simonson, the association's chief economist.
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