June 7, 2013: Nonresidential Construction Index Hits Record High
Two Point Improvement in the Second Quarter
According to FMI, this is not a bullish trend yet, but it demonstrates that the nonresidential market continues an upward push. However, the index for the overall economy rose 7.9 points and the combined index sentiment for economies where panelists are doing business rose 5.8 points. Current issues for the second quarter NRCI include the effects of sequestration on public and private construction. The majority of the respondents expect only a 0 to 4 percent reduction in their public works projects due to sequestration.
Panelists also responded to questions about potential labor shortages after losing more than 30 percent of the construction labor force during the recession. The majority reported few labor shortages at this time. Looking at a year from now, 22 percent of panelists expect severe shortages for construction laborers, as well as shortages for select trades.
Publication date: 6/3/2013