Construction Outlook Good
May 8, 2015
Rising employment numbers and an increase in the Dodge Momentum Index both bode well for the construction industry.
Nationally, employment numbers released today by the Bureau of Labor Statistics showed an April increase of 223,000 jobs, 20 percent of which (45,000) occurred in the construction industry.
April’s 4.6 percent increase in construction-related jobs year-over-year “is in line with the recent, accelerating trend,” according to Fortune magazine.
Meanwhile, the Dodge Momentum Index, a monthly measure of the first (or initial) report for nonresidential building projects in planning, rose 0.8 percent in April. These initial reports have been shown to lead construction spending for nonresidential buildings by a full year, says Dodge Data and Analytics.
According to a release by the organization, “April’s slight rise shows planning activity beginning to edge up once again after retreating 2.5 percent in March.”
The release also said the numbers reflect an ongoing “up-and-down pattern that’s been present so far in 2015. Although the planning statistics have essentially plateaued in early 2015, the level of activity continues to be higher than a year ago, enabling the latest month’s Momentum Index to be up 8.5% compared to April 2014.”