Concrete Products covers the issues that attract producers of ready mixed and manufactured concrete focusing on equipment and material technology, market development and management topics.
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www.concreteproducts.com September 2016 • 21 "Though many contractors continue to report extensive backlog, the data suggest that average firm backlog may begin to retrench," warns Basu. "The only significant driver of economic growth in America presently is consumer spending. Corporate profits remain stagnant and business investment remains underwhelming. Public sector spending does not appear positioned to accelerate anytime soon despite the passage of a federal highway bill last year." Precisely half of the 16 nonresidential subsectors expanded at mid-year. Two of the largest subsectors—manufacturing and commer- cial—experienced significant contractions in June, however, and were responsible for a majority of the dip in spending. Tepid spending by public agencies also continues to shape the data. Despite a monthly pick-up in spending, water-supply construction spending is down 14 percent on a year-over-year basis. Public safety construction spending is down 8.4 percent from a year ago, sewage and waste disposal by nearly 15 percent, highway and street by about 6 percent, education by 4 percent and transportation by more than 3 percent. 2016 INDEXES RISE An Associated General Contractors of Americas analysis paralleled the minor, three-month nonresidential construction spending lag ABC observed, but also confirmed that most market segments posted solid increases in the first half of 2016 compared to the same period in 2015. "The drop in construction spending over the past three months is probably more a reflection of the very strong gains posted early in the year than of cooling demand for construction," notes AGC Chief Economist Ken Simonson. "Nearly every major segment had first-half gains of more than 5 percent compared with a year ago. Contractors, surveys and the media all continue to report plenty of projects are starting or will soon." Construction spending in June totaled $1.134 trillion at a season- ally adjusted annual rate, 0.6 percent lower than the May total, he adds, noting that a) March–June spending declines followed unusually large increases in the previous three months, probably because of an exceptionally mild winter in some regions; and, b) the year-to-date increase of 6.2 percent for January–June 2016, compared with the same months of 2015, provides a truer picture of the industry's condition. Private residential spending was virtually unchanged for the second month in a row and 7.8 percent higher year-to-date. Spending on multifamily residential construction slid 1.5 percent for the month but soared 22 percent year-to-date, while single-family spending fell 0.4 percent from May to June but rose 11 percent year-to-date. Pri- vate nonresidential construction spending decreased 1.3 percent for the month but climbed 7.9 percent year-to-date. The largest private nonresidential segment in June was power construction (including oil and gas pipelines), which slipped 0.7 percent for the month but rose 8.2 percent year-to-date. The next-largest segment, manufac- turing, lost 4.5 percent for the month and 2.7 percent year-to-date. Commercial (retail, warehouse and farm) construction declined 1.6 percent in June but climbed 8.6 percent year-to-date. Public construction spending declined 0.6 percent from a month before but was still up 1.5 percent for the first five months of 2016 combined. The biggest public segment—highway and street construc- tion—shrank by 1.4 percent for the month but was up 3.9 percent year-to-date. The other major public construction category, educa- tion, dipped by 0.5 percent in June but gained 5.9 percent for the combined January-June period. NEWS SCOPE MARKETS Idlers CEMA C, D, E Scan for more information CEMA C, D, E Flat Return Rolls Guide Rollers Impact Idlers Live Shaft Idlers Return Roll Guarding Offset Idlers Self-Aligning Idlers Rubber Disc Idlers Troughing Idlers Underground Idlers V-Returns And more... www.martinsprocket.com 817-258-3000