Construction + Economy

The U.S. Department of Commerce recently released its estimate of construction spending for April 2015. The annual rate of construction spending is projected to top $1 trillion for the year, the highest level of spending since the 2008 financial crisis and resulting economic downturn. Construction spending increased 2.2% in April. Private nonresidential construction increased 3.1% [...]

A first-quarter survey by the Business Roundtable indicates CEOs expect U.S. GDP to increase 2.8% in 2015, up from 2.4% last quarter. Reuters has the story here.

Total construction put in place (CPIP) for 2015 is predicted to grow 8%, according to FMI’s recently released Q1-2015 Construction Outlook. This supports that earlier FMI predictions that CPIP will top $1 trillion in 2015, which the market has not seen since 2008 and indicates that the economy is on track for a resilient recovery. [...]

After its first negative score in ten months, the Architecture Billings Index (ABI) showed a nominal increase in design activity in February, and has been positive 10 out of the past 12 months. As a leading economic indicator of construction activity, the ABI reflects the approximate 9- to 12-month lead time between architecture billings and [...]

The Nonresidential Construction Index (NCRI) from FMI rose two points in Q1 to a score of 64.8. This normally is a positive economic sign. However, construction companies are facing the challenge of having enough people to keep up with increasing backlogs, warns Phil Warner, researcher for FMI. The engineering and construction executives that comprise the [...]

My most recent contribution to the Lighting Controls Association’s blog is a post summarizing current economic trends, 2014 year in review for the lighting industry, and the AIA’s Consensus Construction Forecast. Check it out here.

Total construction put in place (CPIP) for 2014 will be $62 billion greater than last year—a 7% increase, according to the latest report from FMI. CPIP should finish this year around $972 billion and is expected to top $1.04 trillion in 2015. Commercial and manufacturing construction are two of the largest growth sectors, accounting for [...]

FMI recently released its Q3-2014 Construction Outlook. The forecast calls for solid, slow growth. Contributing factors include relatively low energy prices, low inflation, unemployment holding around 6.2% and GDP slowly growing. Additionally, consumer confidence is rising steadily, building permits and housing starts bounced back in July, and banks are starting to lend again–that is, if [...]

Headed by the continued strength in the multi-family residential market and the emerging growth for institutional projects, demand for design services continues to be healthy as exhibited in the latest Architecture Billings Index (ABI). As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lead time between architecture [...]