Ken Simonson's blog

Construction spending skids in June; jobs rise in July; wage gains vary by sector, state

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 increased 0.1%, not seasonally adjusted (and seasonally adjusted), in July and 1.7% over 12 months, the Bureau of Labor Statistics reported last Wednesday. AGC posted an explanation and tables 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. There are no indexes yet for other building types, residential or nonbuilding construction. The PPI for final demand construction, not seasonally adjusted, rose 0.5% in July and 3.3% over 12 months. The overall PPI for new nonresidential building construction—a measure of the price contractors say they would charge to build a fixed set of five categories of buildings—rose 0.4% for the month and 3.2% since July 2013.   [node:read-more:link]

Construction spending skids in June; jobs rise in July; wage gains vary by sector, state

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 June totaled $950 billion at a seasonally adjusted annual rate, down a steep 1.8% from May but up 5.5% from June 2013, the Census Bureau reported last Friday. Census revised up the totals for May (by $12 billion) and April ($5 billion). Private residential spending dropped 0.3% for the month but rose 7.4% over the latest 12 months; private nonresidential spending, -1.6% and 11%, respectively; and public construction spending, -4.0% and -2.9%. Of the three residential components, new single-family construction slid 1.4% in June but climbed 8.5% year-over-year; new multifamily, increased 2.5% and 33%, respectively; and improvements to existing residential structures, 0.4% and -0.2%.   [node:read-more:link]

Most metros add construction jobs in June; second-quarter employment costs stay mild

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.

From June 2013 to June 2014, construction employment increased in 215 out of 339 metropolitan areas for which the Bureau of Labor Statistics (BLS) reports construction data, declined in 80 and was unchanged in 44, according to an analysis that AGC released last Wednesday. (The agency combines mining and logging with construction in most metros to avoid disclosing data for industries with few firms. Because metro data is not seasonally adjusted, comparisons with months other than June are not meaningful.)   [node:read-more:link]

MHC, AIA, NABE surveys imply improving construction market; retailers think small

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.

“New construction starts in June advanced 6%” at a seasonally adjusted annual rate to the highest level so far in 2014, McGraw Hill Construction (MHC) reported last Tuesday. “Nonresidential building strengthened [+12%] after pulling back in May, with the lift coming from the start of several large manufacturing plant projects. Modest gains in June were also reported for housing [+3%] and nonbuilding construction (public works and electric utilities) [+2%]. During the first six months of 2014, total construction starts on an unadjusted basis were…up 1% from the same period a year ago….During the first two months of 2014 [activity was sluggish], but then the pace of construction starts began to pick up…‘The first half of 2014 revealed a mixed performance by project type,’ stated Robert A. Murray, chief economist for [MHC].   [node:read-more:link]

Most states add jobs year-over-year but not since May; most PPIs remain mild in June

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 increased in 38 states and the District of Columbia from June 2013 to June 2014 and decreased in 12 states, an AGC analysis of Bureau of Labor Statistics (BLS) data released Friday showed. The largest percentage gains were in Florida (11%, 41,700 jobs), Nevada (10%, 5,900) and Utah (9.3%, 6,800). Florida added the most jobs, followed by California (29,800, 4.7%) and Texas (19,100, 3.1%). The steepest 12-month percentage losses occurred in New Jersey (-8.1%, -11,200) and Alaska (-5.5%, -900). New Jersey lost the most construction jobs, followed by Arizona (-4,500, -3.6%). For the month, 21 states and D.C. added construction jobs, 27 states lost jobs and Arizona and New Mexico had no change.   [node:read-more:link]

Starts jump in June, Reed says; several reports point to growth in diverse segmentsin May

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 in June jumped 14% compared with June 2013, Reed Construction Data reported Friday, based on data it collected. Cumulative starts for the first half of 2014 exceeded January-June 2013 starts by 2.4%. Nonresidential building starts slipped 3.1% year-to-date, with a 14.5% drop in commercial starts offsetting gains of 5.9% for institutional buildings and 13.5% for industrial (manufacturing). Heavy engineering starts rose13% year-to-date.   [node:read-more:link]

June employment, May spending rise for construction; most metros add jobs in May

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 rose by 288,000, seasonally adjusted, in June and 2,495,000 (1.8%) over 12 months, the Bureau of Labor Statistics (BLS) reported last Thursday. Construction employment rose by 6,000 for the month and 186,000 (3.2%) over the year to 6,015,000, the highest total since June 2009. Residential construction employment (residential building and specialty trade contractors) climbed by 6,600 for the month and 106,300 (4.9%) for the year. Nonresidential employment (building, specialty trades, and heavy and civil engineering construction) was flat in May and up 80,000 (2.2%) year-over-year. All five residential and nonresidential segments added workers over 12 months. Aggregate hours worked in construction increased 3.2% over 12 months, while average hourly earnings rose 2.3%.   [node:read-more:link]

40 states, DC add jobs in May; surveys show varied trends for housing, nonres activity

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 increased in 40 states and the District of Columbia from May 2013 to May 2014 and decreased in 10 states, an AGC analysis of Bureau of Labor Statistics (BLS) data released on June 20 showed. The largest percentage gains were in Nevada (13%, 7,000 jobs), Florida (9.8%, 35,300) and Minnesota (9.7%, 9,700). California added the most jobs (37,300, 5.9%), followed by Florida and Texas (26,500, 4.3%). The steepest 12-month percentage losses occurred in West Virginia (-6.3%, -2,200), New Jersey (-6.2%, -8,500) and Montana (-5.7%, -1,400). New Jersey lost the most construction jobs, followed by Arizona (-4,100, -3.3%). For the month, 30 states and D.C. added construction jobs, 19 states lost jobs and Alaska had no change.   [node:read-more:link]

PPIs remain calm overall but rise for finished buildings; oil-by-rail niche mushrooms

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 slid 0.3%, not seasonally adjusted (-0.2%, seasonally adjusted), in May and rose 2.0% over 12 months, the Bureau of Labor Statistics reported Friday. AGC posted an explanation and tables 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. There are no indexes yet for other building types, residential or nonbuilding construction. The PPI for final demand construction, not seasonally adjusted, rose 0.1% in May and 3.2% over 12 months. The overall PPI for new nonresidential building construction—a measure of the price contractors say they would charge to build a fixed set of five categories of buildings—increased 0.1% for the month and 3.3% since May 2013.   [node:read-more:link]

Construction payrolls and spending edge higher; Beige Book points to further growth

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 rose by 217,000, seasonally adjusted, in May and 2,379,000 (1.7%) over 12 months, the Bureau of Labor Statistics (BLS) reported Friday. Construction employment rose by 6,000 for the month and 189,000 (3.3%) over the year to 6,004,000, the highest total since June 2009. Residential construction employment (residential building and specialty trade contractors) climbed by 3,300 for the month and 105,600 (4.9%) for the year. Nonresidential employment (building, specialty trades, and heavy and civil engineering construction) rose by 2,700 from April and 82,000 (2.2%) year-over-year. All five residential and nonresidential segments added workers over 12 months.   [node:read-more:link]