PPI jumps in February; contractors are optimistic on hiring and activity, two surveys sayEditor’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.Click here to view February PPI table.The producer price index (PPI) for finished goods rose 0.8%, not seasonally adjusted (0.7%, seasonally adjusted), in February and 1.7% over 12 months, the Bureau of Labor Statistics reported on Thursday. The PPI for inputs to construction—a weighted average of the cost of all materials used in construction plus items consumed by contractors such as diesel fuel—increased 1.3% for the month and 2.0% year-over-year, outpacing the PPIs for most new nonresidential building construction and subcontractors’ work. The PPI for new offices was flat in February and rose just 1.0% over 12 months; new industrial buildings, 0% and 1.3%, respectively; schools, 0.3% and 1.2%; and warehouses, -0.3% and 2.6%. The new PPI for health care buildings, which dates only to June 2012, was unchanged in February. The PPI for new, repair and maintenance work on nonresidential buildings by electrical contractors fell 0.3 % in February and 0.4% over 12 months; the index for plumbing contractors fell 0.1% for the month but increased 1.6% from a year ago; the index for roofing contractors rose 0.1% and 2.2%, respectively; and concrete contractors, 0.5% and 1.2%


Employment shows biggest gain in six years; Beige Book reports widespread pickupEditor’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 236,000, seasonally adjusted, in February and 1,966,000 (1.5%) over 12 months, the Bureau of Labor Statistics reported on Friday. The unemployment rate was 8.1%, not seasonally adjusted (7.7%, seasonally adjusted), down from 8.7% a year earlier. Construction employment rose for the ninth straight month and totaled 5,784,000, seasonally adjusted, the most since September 2009. The increase of 48,000 from January was the largest one-month gain since March 2007. Construction employment rose 140,000 (2.5%) from February 2012, while total hours worked in construction increased by 3.3%, implying that contractors are lengthening working hours and also hiring new workers. The unemployment rate for former construction workers dropped from 17.1%, not seasonally adjusted, in February 2012 to 15.7%. Residential construction employment (residential building and specialty trade contractors) rose by 19,400, seasonally adjusted, for the month and 64,200 (3.1%) for the year. Nonresidential employment (building, specialty trades, and heavy and civil engineering construction) climbed 29,000 in February and 75,700 (2.1%) over 12 months.
March 11, 2013


Construction spending fell in January, Census says, but Reed reports jump in startsEditor’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 January totaled $883 billion at a seasonally adjusted annual rate, down 2.1% from December but up 7.1% from January 2012, the Census Bureau reported last week. The November and December totals were each revised up by over $15 billion, reflecting a surge in power construction as contractors rushed to finish wind energy projects to qualify for tax credits by yearend. Private residential construction spending was flat for the month and up 22% from January 2012. Private nonresidential spending slumped 5.1% from December but rose 4.0% year-over-year. Public construction spending fell 1.0% for the month and 3.0% year-over-year. New single-family construction rose 3.6% and 30%, respectively. New multifamily spending rose 1.7% and 55%. Of the top three private nonresidential categories, spending on power construction (including oil and gas fields and pipelines) fell 14% and 2.7%; manufacturing construction fell 2.9% for the month but rose 13% year-over-year; and commercial construction (retail, warehouse and farm) edged up 0.6% and 3.0%.
March 04, 2013