Construction Sector Optimism Improves for First Quarter.MURRAY HILL Murray Hill may refer to one of the following places:
But Current Conditions Have Weakened U.S. construction executives surveyed in December 1998 expressed a significant rebound in optimism for order book levels in the first quarter of 1999, reversing the 18-point index retreat recorded in November, 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 latest monthly survey of 200 construction executives. Those questioned in December also indicated heightened optimism that employment levels will rise through March, but expectations for price levels declined marginally for the period. Current conditions, perhaps reflecting the soft commercial real estate market during the fall of 1998, dropped off sharply, according to the survey. "No industry is more dependent on a healthy credit market than is the construction sector," said David T. Kresge, 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 for Dun & Bradstreet. "Last September's market turmoil momentarily mo·men·tar·i·ly adv. 1. For a moment or an instant. 2. Usage Problem In a moment; very soon. 3. Moment by moment; progressively. dampened new construction. But the crunch proved short-lived, as U.S. markets have proved to be surprisingly resilient See resiliency. . So long as interest rates remain at historic low levels and the credit pipeline remains open, it is likely that the sector will regain its earlier luster." Optimism Levels Expected to Rise Sharply for Order Books and Employment while Price Expectation Levels Tail Off Modestly The December construction industry survey suggests that order books will return to levels predicted in the October 1998 survey. The Order Books Index for the coming three months, which plummeted 18 points in the November survey to 0, regained 16 points in the December survey. The Employment Index added eight points, to 15. The Prices Index fell two points to 18, but still stands two points higher than in the year-ago survey. Note to Editors The indexes in the Dun & Bradstreet Construction Survey 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 a decrease in order books, employment and prices from those expecting an increase. Unless otherwise indicated, the increases and decreases in indexes represent changes from the previous month. Current Conditions in December Decline Across the Board When asked about their current conditions, construction executives interviewed for the December survey reported that the sector suffered declines in every category, particularly in order books, where the index fell 15 points, from 24 to 9. The Employment Index lost seven points, to minus 4. And the Prices Index slid four points, to 24. The Prices Index, however, remained nine points ahead of the year-ago survey. 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), the leading provider of business-to-business credit, marketing and purchasing information, and receivables management services, 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. , the leading debt-rating agency and a major provider of analytical and financial information for capital market investors. The corporation, headquartered in Murray Hill, N.J., employs 13,000 people in 41 countries and reported 1997 revenue from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $1.8 billion. Additional information about The Dun & Bradstreet Corporation is available through its Web site, www.dnbcorp.com. -0-
THE DUN & BRADSTREET CONSTRUCTION SURVEY
1997 1998 1998 1998
Dec. Oct. Nov. Dec.
Three-Month Expectation Indexes
Order Books 18 18 0 16
Employment 20 11 7 15
Prices 16 15 20 18
Current Conditions Indexes
Order Books 13 23 24 9
Employment 3 3 3 -4
Prices 15 25 28 24
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 |
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