Weighing new Bureau of Economic Analysis (BEA) data, Associated Builders & Contractors reports that nonresidential fixed investment—a gross domestic product category embodying nonresidential construction activity—expanded at a seasonally adjusted rate of 5.2 percent in the second quarter, following a 7.2 percent jump in Q1. The expansion contributed more than 0.6 percentage point to GDP growth, due in large measure to increased construction equipment investment. The other two nonresidential fixed investment components—structures and intellectual property—also expanded, but at a slower pace.Read More
Source: Associated Builders & Contractors, Washington, D.C.
“The nonresidential construction sector gained momentum over the last year and should continue to expand into 2016,” affirms ABC Chief Economist Anirban Basu. “The construction industry has benefited from increased stability stemming from low materials prices and greater certainty regarding federal budgeting and monetary policy, although a lack of appropriately skilled labor will remain a challenge for contractors. ABC predicts the nonresidential construction segment will experience 7 percent nominal growth in 2016.”Read More
Sources: FMI Corp., Raleigh, N.C.; CP staff
Except for the hint of a slight decline indicated at mid-year, commercial, industrial and institutional building activity continues at a steady pace, according to the Nonresidential Construction Index Report (NRCI) for Q3 2015. Prepared by management consultant FMI, the index reflects sentiments of construction executives nationwide.Read More