Construction Firms Expect Growth Through September, According To Dun & Bradstreet Survey; Current Conditions Show Extremely Strong Order Books and High Prices, Employment Levels Slightly Below Seasonal Averages.WILTON, CONN CONN Connecticut (old style) CONN Connection CONN Connector CONN Connotation .--(BUSINESS WIRE)--August 1, 1996--U.S. construction firms expect continued moderate growth during the coming three months, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. The Dun & Bradstreet Corporation's most recent monthly survey of 200 construction executives. The survey also indicates that current order books are at their strongest level since September 1995, and selling prices remain at the relatively high levels that have been seen for most of 1996. Employment levels, however, are slightly below seasonal norms. "Construction order books are much stronger than at any other time this year, and most firms expect to outpace out·pace tr.v. out·paced, out·pac·ing, out·pac·es To surpass or outdo (another), as in speed, growth, or performance. outpace Verb [-pacing, their average production schedules through September," said Joseph W. Duncan, vice president and chief economist The Chief Economist is a single position job class having primary responsibility for the development, coordination, and production of economic and financial analysis. It is distinguished from the other economist positions by the broader scope of responsibility encompassing the of The Dun & Bradstreet Corporation. "The strength in the sector has kept prices high, but employment growth has failed to keep pace with the general vitality vi·tal·i·ty n. 1. The capacity to live, grow, or develop. 2. Physical or intellectual vigor; energy. in the industry." Construction Executives Predict Strong, Sustained Growth In Order Books Through September Construction executives expect growth in their sector to be sustained throughout the third quarter of 1996. The Order Books Index for the coming three months increased two points to 50, and the Employment Index dropped slightly to 27. The Prices Index dropped six points to 20, but was still significantly higher than the year-ago index. "After reporting lack-luster growth during much of the first half of 1996, the construction industry has clearly hit its stride with the summer building season," Duncan said. "This strength in the construction industry should also help drive growth in associated sectors, prompting increased demand for building materials Building materials used in the construction industry to create . These categories of materials and products are used by and construction project managers to specify the materials and methods used for . and equipment, as well as for durable goods durable goods Goods, such as appliances and automobiles, that have a useful life over a number of periods. Firms that produce durable goods are often subject to wide fluctuations in sales and profits. Also called consumer durables. to equip e·quip tr.v. e·quipped, e·quip·ping, e·quips 1. a. To supply with necessities such as tools or provisions. b. and furnish fur·nish tr.v. fur·nished, fur·nish·ing, fur·nish·es 1. To equip with what is needed, especially to provide furniture for. 2. new homes and businesses." Current Conditions Include Strong Order Books, High Selling Prices and Employment Levels Slightly Below Seasonal Norms Current conditions in the construction industry show significant improvement from the prior survey, with very strong order books and relatively high selling prices, but employment levels are slightly below seasonal norms. The Order Books Index measuring current conditions rose 8 points to 16, and the Prices Index dropped three points to 22. The Employment Index fell three points to minus 2. The Dun & Bradstreet Corporation is the world's leading marketer of information, software and services for business decision making, with worldwide revenues of $5.4 billion in 1996. -0- (See attached tabular tab·u·lar adj. 1. Having a plane surface; flat. 2. Organized as a table or list. 3. Calculated by means of a table. tabular resembling a table. data) -0-
THE DUN & BRADSTREET MONTHLY CONSTRUCTION SURVEY
June April May June
1995 1996 1996 1996
Three Month Expectation Indexes
Order Books 41 57 48 50 Employment 32 37 28 27 Prices 14 26 26 20 Current Conditions Indexes Order Books 1 -7 8 16 Employment 2 -9 1 -2 Prices 23 18 25 22 -0-
The indexes are calculated by subtracting the percentage of
respondents expecting a decrease in new orders, employment and prices
from the percentage expecting an increase.
Source: Economic Analysis Department
The Dun & Bradstreet Corporation
CONTACT: Neil DiBernardo Dun & Bradstreet (203) 834-4263 |
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