As predicated at the end of 2014, the construction industry is slated to grow during the next year (and beyond). With construction starts estimated to increase 9% from 2014 to $612 billion, we’ve already begun to see some indicators of this growth in areas such as employment, the construction backlog indicator and construction spending.
Let’s take a quick look at each.
Construction jobs are on the rise: according to the Bureau of Labor Statistics, construction added 29,000 jobs in February. Compared to February 2014, construction jobs have increased by 321,000.
2. Construction Backlog Indicator
A forward-looking national economic indicator, the Construction Backlog Indicator (CBI) reflects the amount of work that will be performed by commercial and industrial contractors.
Image via JLL
According to research from JLL, due to the high construction index from the end of 2014, 2015 is going to see growth in the construction sector as the economy continues to recover and stabilize.
3. Construction Spending
As reported by the U.S. Census Bureau of the Department of Commerce, construction spending for January 2015 totaled an estimated $971.4 billion (seasonally adjusted annual rate).
Total Construction Spending
Compared to January 2014, total construction CPIP has increased 1.8%.
Non-Residential Construction Spending
Compared to January 2014, non-residential construction has increased 4.8%. Manufacturing, recreation and lodging saw the largest increases with 22.5%m 19.3% and 18.2% increases in spending, respectively.
What are some other indicators that support growth within the construction industry? Share your thoughts in the comments below.