Every two weeks, Oldcastle Building Solutions Business Intelligence prepares a report focused on understanding and analyzing construction market data and trends.
This in-depth report is developed primarily for internal distribution, but Oldcastle Building Solutions exists to inform construction professionals like you so starting now, we're making this report available for anyone who's interested in reading it.
What's New In This Report?
|
HighlightsABI dropped below 50 to 49.6, reflecting HMI was 58, the first time since June 2015 below 60 |
Construction UpdateConstruction & material costs are up 2.2% and 0.8% annually Housing permits were down 0.2%, while starts were up 1.8% |
Economic UpdateUnemployment is at 4.9% with 151,000 non-farm jobs added Inflation "All Items" +1.4% and "All Items Less Food & Energy" +2.2% |
Key Takeaways
- The Architectural Billings Index (ABI), a 9-12 month leading indicator for commercial construction, dropped below 50 to 49.6 in January, which appears to reflect some fallout from the month's economic uncertainties
- The NAHB/Wells Fargo Housing Market Index (HMI) showed builder confidence dipping in January to 58, the first drop below 60 since June 2015
- The Construction Cost Index (CCI) showed a 2.2% annual gain, supported by a 0.8% gain from the Materials Cost Index (MCI)
- Housing permits were down 0.2% to 1.2M; starts showed a modest 1.8% gain to 1.099M since December 2015
- The unemployment rate is essentially unchanged at 4.9%, with 151,000 non-farm jobs added
- The CPI-U, which indicates inflation, was unchanged in January; the "All items" Index increased 1.4%, supported by rises in shelter and medical costs
