The positive signs of growth are encouraging and align with other leading indicators we’re seeing, including architectural billings.
Norcross, GA (PRWEB) December 18, 2013
Reed Construction Data announced today that its November Expansion Index stood at 1.49, indicating that overall construction in the United States is expected to grow over the next 12 months. The Expansion Index is a monthly measure of expectations for the construction marketplace over the upcoming 12 to 18 months, based on the value of projects in the planning pipeline. A reading greater than 1 indicates that construction volume is expected to expand; a reading below 1 indicates that construction volume is expected to shrink, and a reading equal to 1 indicates that construction volume is expected to be unchanged.
"The Expansion Index is a reliable indicator as it’s based on actual reported projects and has been shown to lead construction spending by about 12 to 18 months," said Bernie Markstein, U.S. Chief Economist, Reed Construction Data. "The positive signs of growth are encouraging and align with other leading indicators we’re seeing, including architectural billings."
In addition to an overall measure of U.S. construction, Reed uses the Expansion Index to track the expected construction volume for every state and over 360 MSAs.
Continued expansion of the economy and improved employment growth support the positive signal from Reed’s Expansion Index. Companies are finding it necessary to expand in the face of rising demand. The budget deal working its way through congress, if enacted, would be another positive for the economy – reducing the size of the sequester and removing one source of uncertainty for businesses. That will keep the Reed Expansion Index well above 1 for several months and keep construction activity on an upward path.
The Expansion Index is a "floating index," as it is a measure of expected growth for a given market relative to the size of the market. The data covered includes non-residential and multifamily residential construction.
For more information and to view an interactive version of the Expansion Index, visit http://www.reedconstructiondata.com/market-intelligence/expansion-index/.
About Reed Construction Data
Reed Construction Data is a trusted source for detailed, accurate, and up-to-date information on private and public construction projects across the United States and Canada. Reed’s data collection teams leverage strong industry relationships, innovative technology, and third-party data sources to deliver timely and accurate information on projects, companies, and contacts, and daily updates for all types of general and civil construction. For more information, visit http://www.reedconstructiondata.com.