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 we're making this report available for anyone who's interested in reading it.
What's New In This Report?
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HighlightsJuly 2016 HMI fell 1 point to 59, while maintaining its narrow positive range June 2016 ABI dipped to 52.6 but was the fifth consecutive positive score |
Construction UpdateJune 2016 Housing Permits made 1.5% gain; Starts stronger with 4.8% gain Construction Cost Index up 3.4% annually, gains in labor and wages |
Economic UpdateJune 2016 CPI-U (Inflation) rose 0.2% for the second month PPI Inputs to Construction, goods gained 1.1% in June 2016 |
Key Takeaways
- The NAHB/Wells Fargo Housing Market Index (HMI) fell 1 point to 59, indicating that while builders' confidence is still positive, concerns over labor and lot shortages are keeping the index scores in a narrow positive range
- The Architectural Billing Index (ABI), a 9-12 month leading indicator for commercial construction, dipped slightly to 52.6 in June 2016
- In June 2016, housing permits increased 1.5% over May 2016 reaching 1.2M; however, they were 13.6% below the June 2015 estimate
- Housing starts made stronger gains in June 2016 with 4.8% growth to 1.2M; both single family (+4.4%) and multi-family (+5.4%) starts showed gains
- In July, the Construction Cost Index (CCI) by ENR showed 3.4% annual growth, supported by gains in both the labor and wage components
- The CPI-U which indicates inflation rose by 0.2% in June 2016, the second consecutive month with a 0.2% gain
- Construction Producer Price Indexes (PPIs), specifically "Inputs to Construction, Goods" showed an increase of 1.1% in June 2016, while still 2.5% below June 2015
