Current State of Construction Industry Sets Records; Swelling order books push up employment and prices.MURRAY HILL Murray Hill may refer to one of the following places:
The construction industry in June reported the strongest results for current order books and prices since The Dun & Bradstreet Corporation began its monthly survey of the sector in 1990. The latest survey of 200 U.S. construction executives indicates that the employment situation has also strengthened considerably in the past few months, reaching the highest levels since August 1994 and setting a record for any June-period survey since 1990. The indexes measuring expectations for the coming three months show that the sector anticipates continued strength in orders and employment, accompanied by modest increases in prices. While expectation levels have come down since March in a fairly typical seasonal pattern, the June 1999 survey indicates builders expect the good times to continue at least through the summer. "Order books in the construction industry are bulging bulge n. 1. A protruding part; an outward curve or swelling. 2. Nautical A bilge. 3. A sudden, usually temporary increase in number or quantity: , and expectations are for continued growth into the fall. It appears that the recent increases in mortgage rates have been more than offset by high levels of consumer confidence, employment growth, and stock market gains," 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. "Some buyers may also have come into the market in order to lock in relatively attractive mortgage rates before they go any higher. The surge in demand reported in June is expected to moderate over the coming months but 1999 promises to be a very good year for the construction industry." Expectations Strong for Time of Year In the June 1999 construction industry survey, expectations for order books continued to decline from March's high, following a usual seasonal pattern. Nonetheless, the Order Books Index for the coming three months remained robust at 50, its highest June level in 5 years. The Employment Index remained unchanged from May at 24 -- well below the March level of 42, but above June 1998 and 1997 numbers. The Prices Index increased a moderate three points from May to 21. While this is three points below the year-ago level, it is higher than in the June surveys conducted in 1995 to 1997. Current Conditions for Order Books and Prices Surge in June The levels of construction for residential and commercial properties, and of public works public works pl.n. Construction projects, such as highways or dams, financed by public funds and constructed by a government for the benefit or use of the general public. Noun 1. projects continued to grow at a frenetic fre·net·ic or phre·net·ic also fre·net·i·cal or phre·net·i·cal adj. Wildly excited or active; frantic; frenzied. [Middle English frenetik, from Old French frenetique pace. The D&B indexes measuring current conditions for order books and prices set records in June, despite the rise in fixed-rate mortgage rates. Employment levels also enjoyed robust growth, reaching the highest level in almost five years. The Order Books Index for June catapulted 16 points from 23 to 39. The Prices Index jumped 14 points from 25 to 39. And the Employment Index rose 11 points from one to 12. "Developing shortages of workers and materials, together with higher mortgage rates, may cause some 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 construction as the year progresses," notes Kresge. "That would allow builders to restore housing inventories to more normal levels. It would also take some of the pressure off of housing prices, so we would not see a repetition REPETITION, construction of wills. A repetition takes place when the same testator, by the same testamentary instrument, gives to the same legatee legacies of equal amount and of the same kind; in such case the latter is considered a repetition of the former, and the legatee is entitled of the surge in the price index that was reported in the June 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 ), with world headquarters in Murray Hill, New Jersey
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THE DUN & BRADSTREET CONSTRUCTION SURVEY
1998 1999 1999 1999
June April May June
Three-Month Expectation Indexes
Order Books 42 59 52 50
Employment 17 36 24 24
Prices 24 24 18 21
Current Conditions Indexes
Order Books 14 17 23 39
Employment 6 -4 1 12
Prices 26 27 25 39
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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