The PPI for inputs to
construction industries jumped
1.4% for the month, following a 0.9% gain in February, and 3.8% over 12 months.
The producer price index for finished
goods rose in March by 0.9%, not seasonally adjusted (but was flat, seasonally
adjusted), and 2.8% over 12 months, the
Bureau
of Labor Statistics reported April 12. The PPI for inputs to
construction industries - a weighted average of the cost of all materials used
in construction, plus items consumed by contractors such as diesel fuel - jumped
1.4% for the month, following a 0.9% gain in February, and 3.8% over 12 months.
The large
monthly gain was driven by the PPIs for diesel fuel, up 3.5% in March and 6.6%
over 12 months; gypsum products such as wallboard, which rose 2.2% in March
following increases of 5.1% in February and 5.9% in January, bringing the
12-month change to 9.1%; and aluminum mill shapes, up 1.2% in March but down
1.8% year-over-year. Most other key materials had smaller monthly changes:
copper and brass mill shapes, up 0.5% in March but down 6% since March 2011;
concrete products, up 0.3% and 1.9%, respectively; asphalt paving mixtures and
blocks, 0.1% and 11%; plastic construction products, -0.1% and 4.5%; and steel
mill products, -0.6% and 0.4%.
PPIs for new
nonresidential buildings were close to flat for the month but slightly outran
materials costs over 12 months: new warehouses, 0.2% and 4.3%; offices, 0.2%
and 3.9%; schools, 0.1% and 4.7%; and industrial buildings, -0.2% and 3.4%. PPIs
for nonresidential building subcontractors (covering new, repair and
maintenance work) were unchanged in March for
plumbing
contractors (and up 4.3% over 12 months); roofing contractors
(3.9% year-to-year); and concrete contractors (0.9% year-to-year) and down 0.1%
for electrical contractors (4.2% year-to-year).
Construction employment increases
Construction employment increased
from February 2011 to February 2012 in 171 out of 337 metro areas (including
divisions of larger metros) for which BLS provides data, decreased in 119 and
stayed level in 47, according to an analysis by the
Associated
General Contractors of America released April 10. (BLS combines
mining and logging with construction in most metros to avoid disclosing data
about industries with few employers.) The number of areas with year-over-year
construction employment increases was the largest since January 2007.
Atlantic
City-Hammonton, N.J. added the highest percentage (33%, 1,300 combined jobs)
followed by Michigan City-La Porte, Ind. (31%, 400 combined jobs).
Denver-Aurora-Broomfield, Colo. added the most jobs (6,300 combined jobs, 10%),
followed by the Los Angeles-Long Beach-Glendale, Calif. division (4,700
construction jobs, 5%); Portland-Vancouver-Hillsboro, Ore.-Wash. (4,300
construction jobs, 10%); and Indianapolis-Carmel, Ind. (4,100 construction
jobs, 12%).
Monroe, Mich.
(-32%, -600 combined jobs) lost the highest percentage, followed by
Springfield, Mass.-Conn. (-27%, -2,100 combined jobs) and Montgomery, Ala.
(-17%, -1,000 combined jobs). The largest number of losses occurred in the
Chicago-Joliet-Naperville, Ill. division (-5,400 construction jobs, -5%),
followed by St. Louis, Mo.-Ill. (-4,200 combined jobs, -7%); and Tampa-St.
Petersburg-Clearwater, Fla. (-4,000 construction jobs, -8%).
New nonresidential construction starts rise
The value of new nonresidential
construction starts in March rose 1.4%, not seasonally adjusted, from a year
earlier,
Reed
Construction Data reported April 12, based on data it compiled. For
the first quarter of 2012 as a whole compared with January-March 2011, starts
climbed 3.7%, with commercial starts soaring 39% and institutional starts
rising 13%, offsetting a drop of 18% in heavy engineering starts and 48% in
industrial starts.
“Reports from
the 12 Federal Reserve districts indicated that the economy continued to expand
at a modest to moderate pace from mid-February through late March,” the Fed
reported April 11 in the latest “Beige Book,” a compilation of informal surveys
of firms in each district (referenced by the name of its headquarters city).
“The Philadelphia and Dallas districts indicated improvement in demand for
manufacturing with ties to … housing and construction … The St. Louis and
Minneapolis districts reported increases in building permits. The construction
of multifamily housing units, including apartments and senior housing, expanded
in many districts….
“Nonresidential
construction activity improved in the Philadelphia, Cleveland, Richmond,
Atlanta, Chicago and St. Louis districts, though many of these contacts
characterized the improvement as slow. Boston, New York and San Francisco
characterized nonresidential real estate activity as unchanged or steady. The
energy and high-tech sectors were driving much of the demand in the Dallas
district. San Francisco noted a rise in the demand for office space from the
technology sector. Cleveland and Chicago saw a boost in health-care-related
construction.
“Projects
related to the education sector are showing growth in Boston, Cleveland,
Philadelphia and Richmond. The outlook of builders is described as positive or
slowly improving in the Philadelphia, Cleveland, Atlanta and Kansas City
districts and as cautiously optimistic in Boston … several districts reported
an increase in commercial real estate lending activity. The Philadelphia and
Cleveland districts reported increased lending for multifamily housing and
health care.”
Click
here
to view March PPI numbers and
here
to view February metro employment numbers. Click
here
to view updated state economic fact sheets.
