Page 19 - ABC Indiana: The Hoosier Contractor, Spring 2013

The HOOSIER CONTRACTOR SPRING 2013 19
WASHINGTON, D.C. – Associated Builders and Contractors
(ABC) today released its Construction Confidence Index (CCI)
for the second half of 2012. The CCI reflects three aspects
of the U.S. nonresidential construction industry: sales
prospects, staffing levels and profit margins.
“Last year, the biggest issue was the fiscal cliff,” said ABC
Chief Economist Anirban Basu. “This year, worries likely will
stem from a combination of unresolved fiscal cliff issues and
another potentially intense debt ceiling debate.
“A strong construction market requires capital, confidence and
conditions consistent with demand for construction,” Basu
said. “While capital and conditions have been improving
steadily in conjunction with the broader economy, confidence
continues to lag.
“The ongoing lack of confidence, including among those who
would otherwise purchase construction services, continues
to produce small and halting gains in nonresidential
construction spending,” said Basu. “Though index values for
sales, profit margins and staffing levels remained above 50
during the second half of 2012—indicating industry growth—
confidence was lower overall.”
• Sales expectations fell from 66.3 to 62.3
• Profit margins dropped from 56.3 to 55.9
• Staffing levels declined from 62.2 to 59.6
Details
• CCI is a diffusion index. Readings above 50 are
favorable and indicate growth, while readings below 50
are unfavorable.
• The following chart reflects the distribution of responses
to ABC’s most recent survey, as well as a comparison
with the survey for the first half of 2012.
Contact: Gerry Fritz, (703) 812-2062
CONSTRUCTIONCONFIDENCE
DIPS INSECONDHALF OF 2012
by Gerry Fritz
Optimism Cools Across the Board, 2012