Nonresidential construction starts jump.
The
producer price index
(PPI) for finished goods fell 0.2% in October, not seasonally adjusted
(also -0.2%, seasonally adjusted) and rose 2.3% over 12 months, the Bureau of
Labor Statistics (BLS) reported on Wednesday. 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-decreased 0.4% for the month, after climbing
0.9% for two consecutive months.
Prices for
key construction inputs have moved sharply in both directions
since PPI data was gathered in mid-October. Scrap steel
prices have climbed and steel makers have responded with numerous price
increase announcements.
In other news, the
value
of nonresidential construction starts in October
jumped 20% from a year earlier,
Reed
Construction Data reported, based on data it collected. Starts for the first 10
months of 2012 combined rose 10.5% from the same period in 2011. Nonresidential
building starts climbed 8.7% year-to-date, with gains of 17.5% for commercial
starts; industrial (manufacturing) starts, 12.5%; and institutional starts,
3.0%. Heavy engineering (nonbuilding) starts rose 13%.
For more
information, view the October PPI table
here.
Source:
AGC of AmericaLinks
