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Construction employment rises, but unevenly, in January; metro job gains are spotty

Editor’s note:  Construction Citizen is proud to partner with AGC America to bring you AGC Chief Economist Ken Simonson's Data DIGest. Check back each week to get Ken's expert analysis of what's happening in our industry.

The value of nonresidential construction starts, not seasonally adjusted, increased 13% from January 2015 to January 2016, CMD reported on February 11, based on data it collected. Building starts climbed 8.5%, with institutional starts up 2.6%, commercial up 13% and the small industrial segment up 10%. Heavy engineering starts jumped 20%, with the largest segment, road/highway, jumping 39%.

The Federal Highway Administration's National Highway Construction Cost Index, a measure of prices paid by state transportation departments for all roadway construction contracts, decreased 2.4% in September 2015 from June and 1.7% from September 2014.    [node:read-more:link]

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Construction employment rises, but unevenly, in January; metro job gains are spotty

Editor’s note:  Construction Citizen is proud to partner with AGC America to bring you AGC Chief Economist Ken Simonson's Data DIGest. Check back each week to get Ken's expert analysis of what's happening in our industry.

Nonfarm payroll employment increased by 151,000, seasonally adjusted, and by 2,665,000 (1.9%) for the year, and the unemployment rate fell to 4.9%, the Bureau of Labor Statistics (BLS) reported today. Construction employment rose by 18,000 for the month (to 6,615,000) and by 264,000 (4.2%) year-over-year (y/y). Industry employment reached the highest level since December 2008. Residential construction employment (residential building and specialty trade contractors) increased by 20,100 for the month and 149,500 (6.2%) y/y. Nonresidential employment (nonresidential building, specialty trades, and heavy and civil engineering construction) fell by 2,300 for the month and rose 2.9% y/y. The disparity may reflect the ongoing rise in residential spending and downturn in nonresidential spending in the last half of 2015 that the Census Bureau reported on Monday.    [node:read-more:link]

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Construction spending inches up in December; pay accelerates; 44 states, D.C. add jobs

Editor’s note:  Construction Citizen is proud to partner with AGC America to bring you AGC Chief Economist Ken Simonson's Data DIGest. Check back each week to get Ken's expert analysis of what's happening in our industry.

Construction spending in December totaled $1.117 trillion at a seasonally adjusted annual rate, 0.1% above the downwardly revised November rate and 8.2% higher than a year before, the Census Bureau reported on Monday. However, all of the growth for the year occurred in the first seven months. The December total was just 0.2% higher than in July. The full-year total, $1.097 trillion, was the highest annual level since 2007 before adjusting for inflation but was still 5.5% short of the 2006 record. Spending patterns diverged widely by segment and time period. Private residential spending increased by 0.9% for the month and 8.1% year-over-year (y/y). In contrast, private nonresidential spending slumped 2.1% for the month to a level lower than in May, although it was still up 12% y/y. Public construction increased 1.9% and 3.9%, respectively. New multifamily construction jumped 2.7% and 12%; new single-family construction gained 1.0% and 8.7%; and residential improvements rose 0.1% and 5.8%. Most private nonresidential segments decreased for the month but rose y/y.    [node:read-more:link]

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Dodge starts, ABI rebound in December; housing starts slip; property tax receipts rise

Editor’s note:  Construction Citizen is proud to partner with AGC America to bring you AGC Chief Economist Ken Simonson's Data DIGest. Check back each week to get Ken's expert analysis of what's happening in our industry.

The value of new construction starts in December increased 4% from November's level at a seasonally adjusted annual rate, Dodge Data & Analytics reported on Thursday, based on data it collected. "December showed moderate increases for each of the three main construction sectors—nonresidential building [3%], residential building [6%], and nonbuilding construction (public works and electric utilities) [3%]. For 2015 as a whole, total construction starts climbed 8%," with nonresidential building down 8%, residential building up 14% and nonbuilding construction up 23%. "'A strong first half of 2015 was followed by a 20% loss of momentum in the third quarter and then a slight 1% rebound in the fourth quarter, as the expansion began to show that it was getting back on track,'" said Chief Economist Robert Murray.    [node:read-more:link]

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Input PPIs plunge in 2015; completed structure and subcontractor indexes rise diversely

Editor’s note:  Construction Citizen is proud to partner with AGC America to bring you AGC Chief Economist Ken Simonson's Data DIGest. Check back each week to get Ken's expert analysis of what's happening in our industry.

The producer price index (PPI) for final demand in December decreased 0.4% from November on a not-seasonally-adjusted basis (-0.2%, seasonally adjusted) and 1.0% from December 2014, the Bureau of Labor Statistics (BLS) reported Friday. AGC posted tables and an explanation focusing on construction prices and costs. Final demand includes goods, services and five types of nonresidential buildings that BLS says make up 34% of total construction. The PPI for final demand construction, not seasonally adjusted, decreased 0.1% for the month and increased 1.8% for the year, following increases of 2.2% in 2014 and 3.2% in 2013.    [node:read-more:link]

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Construction ends 2015 with job gains; two market trackers say projects are delayed

Editor’s note:  Construction Citizen is proud to partner with AGC America to bring you AGC Chief Economist Ken Simonson's Data DIGest. Check back each week to get Ken's expert analysis of what's happening in our industry.

Nonfarm payroll employment increased by 292,000 in December, seasonally adjusted, and by 2,650,000 (1.9%) for the year, while the unemployment rate held steady at a 7-1/2 year low of 5.0%, the Bureau of Labor Statistics (BLS) reported Monday. Construction employment rose by 45,000 for the month (to 6,538,000) and by 263,000 (4.2%) over 12 months.    [node:read-more:link]

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Contractors show optimism about most segments in AGC poll; November spending dips

Editor’s note:  Construction Citizen is proud to partner with AGC America to bring you AGC Chief Economist Ken Simonson's Data DIGest. Check back each week to get Ken's expert analysis of what's happening in our industry.

Contractors are optimistic, on balance, about the outlook for nonresidential and multifamily construction, based on the 1,580 responses to a survey that AGC released Wednesday. About 44% expect the available dollar volume of projects they compete for in 2016 to be higher than in 2015, while 9% expect the volume to be lower, for a net positive reading of 34%. Among 13 market segments, the net was highest for retail, warehouse and lodging construction, 21%; followed by hospital and private office, 19% each; multifamily, 14%; higher education, 13%; K-12 school and public building, 12% each. There was less optimism about water/sewer, 8%; manufacturing, 7%; highway, 6%; other transportation, 3%; and power, 1%. Respondents registered a 1% net negative reading regarding the outlook for federal construction. However, the survey was completed before the recent enactment of federal tax bills with favorable terms for direct federal projects, highway and transit funds, and tax-subsidized wind and solar power construction.   [node:read-more:link]

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Spending, tax bills augur well for construction; Dodge starts slip in November

Editor’s note:  Construction Citizen is proud to partner with AGC America to bring you AGC Chief Economist Ken Simonson's Data DIGest. Check back each week to get Ken's expert analysis of what's happening in our industry.

Last Friday, President Obama signed legislation that sets spending levels and limitations for federal agencies for fiscal year (FY) 2016, ending next September, and that extends and amends a variety of tax provisions. An AGC analysis of direct federal spending by agency shows "an increase of approximately $8 billion" from FY 2015 for accounts that cover construction. The act "fully funds the authorized levels contained in the recently-enacted FAST Act [authorizing highway, transit and Amtrak programs], resulting in a 5.5% increase in highway funding and a 10% increase in transit funding over FY 2015 levels."    [node:read-more:link]

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Construction employment rises from year ago in 44 states, D.C.; housing shows gains

Editor’s note:  Construction Citizen is proud to partner with AGC America to bring you AGC Chief Economist Ken Simonson's Data DIGest. Check back each week to get Ken's expert analysis of what's happening in our industry.

Seasonally adjusted construction employment rose in 44 states and the District of Columbia from November 2014 to November 2015 and declined in six states, an AGC analysis of Bureau of Labor Statistics (BLS) data released today showed. The number of places with year-over-year (y/y) gains was the most since February. The top three states for jobs added were again California (41,000 jobs, 5.9%), New York (30,500, 8.9%) and Florida (29,300, 7.2%).    [node:read-more:link]

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November PPIs rise for new buildings, some subcontractors, but fall for many inputs

Editor’s note:  Construction Citizen is proud to partner with AGC America to bring you AGC Chief Economist Ken Simonson's Data DIGest. Check back each week to get Ken's expert analysis of what's happening in our industry.

The producer price index (PPI) for final demand in November was unchanged from October on a not-seasonally-adjusted basis (up 0.3%, seasonally adjusted) and declined 1.1% year-over-year (y/y), the Bureau of Labor Statistics (BLS) reported Friday. AGC posted tables and an explanation focusing on construction prices and costs. Final demand includes goods, services and five types of nonresidential buildings that BLS says make up 34% of total construction. The PPI for final demand construction, not seasonally adjusted, decreased 0.3% for the month and increased 2.1% y/y. The overall PPI for new nonresidential building construction—a measure of the price that contractors say they would charge to build a fixed set of five categories of buildings—climbed 2.0% since November 2014. The 12-month increases ranged from 1.0% for healthcare construction to 1.9% for industrial buildings, 2.2% for schools and warehouses, and 2.3% for offices.    [node:read-more:link]