Building Design+Construction's monthly Market Intelligence Report offers a snapshot of the health of the U.S. building construction industry, including the commercial, multifamily, institutional, and industrial building sectors. This report tracks the latest metrics related to construction spending, demand for design services, contractor backlogs, and material price trends.
Data for the Market Intelligence Report is gleaned from reputable economic sources, including the American Institute of Architects, Associated Builders and Contractors, and the U.S. Census Bureau.
Here are some of the highlights from the April 2024 report:
- U.S. construction spending for commercial, institutional, industrial, and multifamily buildings was down 1.0% in February 2024 vs. the previous month, but 13.5% higher than February 2023.
- Public safety, manufacturing, religious, educational, amusement/recreation, and healthcare all saw double-digit year-over-year growth in construction spending.
- The Architectural Billings Index had its best showing since July 2023. While still below 50 (at 49.5), the ABI climbed more than three points in February. The index scores for design contracts and inquiries also jumped in February. Both were above 50, which indicates that, among the firms surveyed by AIA, more firms than not saw increases in design contracts and inquiries for design work.
- Commentary on the latest ABI report from Kermit Baker, PhD, AIA Chief Economist: “There are indicators this month that business conditions at firms may finally begin to pick up in the coming months. Inquiries into new projects grew at their fastest pace since November, and the value of newly signed design contracts increased at their fastest pace since last summer. Given the moderation of inflation for construction costs and prospects for lower interest rates in the coming months, there are positive signs for future growth.”
- Construction backlogs expand: The average U.S. contractor had 8.5 months worth of building construction work in the pipeline as of March 2024, up 0.4 months from February 2024, but down 0.8 months from the same time last year.
- Construction material prices rose 0.4% in March 2024 vs. the previous month, and were 1.7% higher than a year ago. This marks the third straight month of rising prices, after a streak of three consecutive monthly declines.
- Commentary on the latest construction materials price report from Anirban Basu, ABC Chief Economist: “There has been growing evidence of resurfacing inflationary pressures in the nation’s nonresidential construction segment during the past two months. Were it not for declines in energy prices, the headline figure for construction input price dynamics would have been meaningfully higher. A new set of supply chain issues is emerging, including the cost of insuring ships and bottlenecks in the Red Sea, the Panama Canal and Baltimore."
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