Construction Sector Cools in July, and Optimism for Coming Months Moderates; Latest D&B Construction Survey Suggests Lower Consumer Demand as Reason for Industry Slowdown.Business Editors EMBARGOED Embargoed is a UK based human rights organisation campaigning to bring an immediate and unconditional end to all embargoes against the people of Northern Cyprus. Embargoed does not proscribe any political remedy, but considers the embargoes on the people of Northern Cyprus to be For Broadcast and Wire Services after 3 P.M. on Monday, August 7, 2000; For Print Editions on or after Tuesday, August 8, 2000 MURRAY HILL Murray Hill may refer to one of the following places:
U.S. construction executives surveyed by Dun & Bradstreet (D&B) in July report a notable slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in industry growth compared to last month as well as a year ago. The sector is also less optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the August through October period, D&B reported today. "In line with recent industry predictions, the construction sector is continuing to slow down," said Iris Geisler, an economic analyst with Dun & Bradstreet. "But D&B's latest survey found that the number of executives reporting cost or availability of labor, equipment, and 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 . as factors limiting production has decreased or remained steady from last month and last year. Therefore, it would appear that waning housing demand is the primary cause of the current slowdown and that we are observing signs of a long expected downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. rather than a breather driven by a lack of available materials. This may be an indicator of the permanent cooling the Federal Reserve is hoping for." The Dun & Bradstreet's Corporation monthly survey of 200 construction executives tracks both current conditions and three-month expectations. In the latest survey, results for three-month expectations showed a six-point drop in the Order Books Index to 34, a decline indicating a usual seasonal pattern. The Employment Index plunged 12 points to 15, an unusually large fall-off for the time of year. The Prices Index fell 11 points to 14, also a sharp decline, even when adjusted to allow for the usual moderate price growth slowdown at this time of year. Current conditions for order books and employment fell from June to unusually low levels for the month, indicating more than a seasonal slowdown for the construction industry in July. The Order Books Index dropped three points to 16, down 20 points from the year-ago results. And the Employment Index slipped five points to 1, 10 points lower than the year-ago survey. The Prices Index, indicating price growth in the industry has fallen significantly since April, but is still clearly above normal levels. The Prices Index fell six points from June to 33, up seven points from last July. The Dun & Bradstreet Corporation The Dun & Bradstreet Corporation (NYSE NYSE See: New York Stock Exchange : DNB DNB Dictionary of National Biography DNB Drum N Bass (music) DNB De Nederlandsche Bank DNB Dun & Bradstreet (stock symbol) DNB Den Norske Bank DNB David Nelson Band ) consists of the Dun & Bradstreet operating company operating company A business that engages in transactions with outsiders. (D&B) and Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. . D&B is the global leader in business-to-business credit, marketing and purchasing information, and receivables management services. Moody's Investors Service is a leading global provider of credit ratings, research, and analysis of debt instruments for the capital markets. The Dun & Bradstreet Corporation employs approximately 12,200 associates in 37 countries and reported 1999 revenue of $1.97 billion. Additional information is available at www.dnbcorp.com.
THE DUN & BRADSTREET CONSTRUCTION SURVEY
1999 2000 2000 2000
July May June July
Three-Month Expectation Indexes
Order Books 37 52 40 34
Employment 16 39 27 15
Prices 19 20 25 14
Current Conditions Indexes
Order Books 36 13 19 16
Employment 11 -2 6 1
Prices 26 39 39 33
The indexes are calculated by subtracting the percentage of respondents In the context of marketing research, a representative sample drawn from a larger population of people from whom information is collected and used to develop or confirm marketing strategy. expecting/experiencing a decrease in new orders, employment and prices from the percentage expecting/experiencing an increase. Source: Economic Analysis Department The Dun & Bradstreet Corporation |
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