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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HighlightsNAHB / Wells Fargo HMI: Solid at 58 ABI Rose again to 51.9, showing builder's continued cautious optimism |
Construction UpdateFebruary to March 2016 Housing Permits down 7.7%; starts down 8.8% New Single Family House sales down 1.5% to 511K |
Economic Update36 of 51 large MSAs show 12-month unemployment decreases First estimate of real GDP for Q1 2016 is 0.5%, down from 1.4% in Q4 2015 |
Key Takeaways
- The NAHB/Wells Fargo Housing Market Index (HMI) showed builder confidence remaining constant at 58 for the third month, with strong scores from the multi-family residential sector
- The Architectural Billings Index (ABI), a 9-12 month leading indicator for commercial construction, made another gain in March up to 51.9 indicating continued cautious optimism for the approaching home buying season
- Housing permits were down 7.7% to 1.1M, primarily due to a 18.6% decrease in multi-family permits from February 2016
- Likewise, housing starts were down 8.8% to 1.1M from February 2016 estimates, although the decline between single family and multi-family starts was very similar
- 36 of the 51 large MSAs (1M+ population) showed year-over-year unemployment rate decreases in February, with Austin-Round Rock, TX having the lowest rate (3.1%)
- The first, “advanced” estimate for Q1 2016 GDP showed 0.5% growth in the quarter, a contraction after 1.4% growth in Q4 2015
