Steel Market Update is pleased to share this Premium content with Executive members. For more information on how to upgrade to a Premium-level subscription, email Info@SteelMarketUpdate.com. The November and December results for construction spending are suggesting a turnaround. December’s growth rate was the best in the past 13 months. The growth of private construction almost […]
Construction spending slowed in December, but contractors remain optimistic about new projects for 2020. Construction spending dipped 0.2 percent from November to December due to a decline in nonresidential project spending. A 1.4 percent jump in private residential spending, supported by a 2.7 percent increase in single-family home construction, failed to offset a decline in […]
Automotive sales were up year-over-year for most automakers that reported data for January. Sales last month rose 1.0 percent to a seasonally adjusted annual rate of 17.1 million vehicles, according to auto research firm Edmunds. Automotive sales declined 1.6 percent in 2019 to 17.1 million vehicles. Edmunds expects sales for 2020 to be flat, but […]
New home sales were essentially flat in December, edging down 0.4 percent from November to a seasonally adjusted annual rate of 694,000, according the latest data by the U.S. Census Bureau and the Department of Housing and Urban Development. Compared to December 2018, sales increased 23.0 percent. Sales for the full year, however, rose 10 […]
Average home prices increased 3.5 percent year-over-year in November, according to the latest release of the S&P CoreLogic Case-Shiller National Home Price Index. The 20-City Composite rose 2.6 percent, up from a 2.2 percent annual gain in October. “With the month’s 3.5 percent increase in the national composite index, home prices are currently 59 percent […]
The construction industry added jobs in 34 states and D.C. between December 2018 and December 2019, and 29 states added construction jobs in December, according to an analysis by the Associated General Contractors of America of Labor Department data. Contractors say more jobs will be added to payrolls in 2020, but 81 percent of firms […]
Existing home sales grew 3.6 percent in December, bouncing back from a slight decline in November and jumping 10.8 percent from a year ago. The National Association of Realtors reported existing home sales were at a seasonally adjusted annual rate of 5.54 million in December. For 2019, total sales ended on a par with 2018 […]
Steel and aluminum producers agree that lighter, more fuel-efficient vehicles are better for the environment—but that’s where the consensus ends. In letters to the editor published recently by Automotive News, the American Iron and Steel Institute and the Aluminum Association wielded dueling studies to support their claims that theirs is the material of choice to […]
Housing starts jumped 16.9 percent from November to December to a seasonally adjusted annual rate of 1,608,000. Compared to a year ago starts soared 40.8 percent. Single-family starts increased 11.2 percent, while construction with five units or more leapt 32 percent. Starts were strongest in the Midwest and Northeast, increasing 37.3 percent and 25.5 percent […]
Contractors are confident there will be plenty of construction projects in 2020 but are struggling to find qualified workers to hire. Construction employment increased by 20,000 jobs in December and by 151,000, or 2.0 percent, in all of 2019, says an analysis of new government data by the Associated General Contractors of America. “More than […]
November heating and cooling equipment shipments came in at 1.45 million units, up 0.4 percent from the same month one year ago, according to recent data from the Air-Conditioning, Heating, and Refrigeration Institute (AHRI). Residential and commercial storage water heater shipments rose 3.5 percent year over year to a combined 701,383 units; 684,329 units were […]
A leading indicator of nonresidential construction spending rose in December, but yearly data suggests construction spending may see a slowdown in 2020. The Dodge Momentum Index, a monthly measure of the initial report for nonresidential building projects in planning, gained 1.5 percent last month for a reading of 156.2. Planning for institutional projects rose 2.3 […]
The Congressional Budget Office expects the U.S.-Mexico-Canada Agreement to result in higher than expected tariff revenue for the United States on motor vehicles and parts due to stricter rules of origin and labor value content requirements. Included in the revenue calculation is an estimated $3 billion in tariffs to be paid by automakers over the […]
Edmunds analysts estimate auto sales will top 4.3 million in the fourth quarter of 2019, pushing the total for the year to 17.1 million and the fifth year in a row above the 17 million mark. “The fact that new car sales have stayed this strong for this long really defies the odds, especially given […]
Construction spending improved in November, boosting optimism among contractors regarding new projects for 2020. Construction spending rose 4.1 percent to a seasonally adjusted annual rate of $1.324 trillion from November 2018 to November 2019, while industry employment grew in 63 percent or 226 out of 358 metro areas, according to a new analysis of federal […]
S&P Dow Jones reported that the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index gained 3.3 percent in October, compared to 3.2 percent in the previous month. The 20-City composite posted a 2.2 percent year-over-year gain, while the 10-City composite rose 2.2 percent. “October’s U.S. housing data continue to be reassuring,” says Craig J. […]
November sales of new single-family homes increased 1.3 percent to a seasonally adjusted annual rate of 719,000 units after a downward revision to the October rate. “Fueled by the limited number of resales available for purchase, low interest rates and low unemployment, new home sales are finishing the year strong,” said Greg Ugalde, chairman of […]
Housing starts increased 3.2 percent in November to a seasonally adjusted annual rate of 1,365,000. Starts were 1.36 percent above the November 2018 rate. Commencement of construction for single-family homes increased 2.4 percent from October, while starts for buildings of five units or more increased 2.3 percent. New construction was strongest in the South with […]
All the laid off auto workers were back on the job at the beginning of November following the GM strike and restarts at the auto plans reportedly went smoothly. This analysis is based on data from LMC Automotive for automotive assemblies in the U.S., Canada and Mexico. The breakdown of assemblies is “Personal” (cars for […]
FCA and PSA Peugeot signed a binding agreement on Dec. 18 providing for a 50/50 merger to create the fourth largest global auto manufacturer by volume and third largest by revenue. The combined company will have annual unit sales of 8.7 million vehicles and expected revenue of nearly $189 billion, based on 2018 results. The […]
Existing home sales slipped in November after making gains in October, according to the latest report from the National Association of Realtors. Completed transactions fell 1.7 percent to a seasonally adjusted annual rate of 5.35 million last month, but were up 2.7 percent from a year ago. The decline is not a cause for worry, […]
Builders are feeling confident about the market for newly built single-family homes. The National Association of Home Builders/Wells Fargo Housing Market Index rose five points to 76 in December after an upward revision to the November reading. This is the highest reading for the HMI since June 1999. “Builders are continuing to see the housing […]
November housing starts increased 3.2 percent from October and 13.6 percent from November 2018, indicates the latest report from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development. Starts decreased in the Northeast and Midwest, but increased 10.3 percent in the South and 1.4 percent in the West. Single-family starts were […]
October heating and cooling equipment shipments came in at 1.52 million units, down 2.3 percent from the same month one year ago, according to recent data from the Air-Conditioning, Heating, and Refrigeration Institute (AHRI). This is the second consecutive month in which total shipments have decreased on a year-over-year basis. Residential and commercial storage water […]
The Dodge Momentum Index gained 2.9 percent in November to register 155.3. The monthly index measures the first report for nonresidential building projects in planning, which has been shown to lead construction spending by a full year. November’s increase was primarily due to a 6.5 percent increase in the institutional building index. The commercial component […]
The economy added 1,000 construction jobs in November and 146,000 jobs, or an increase of 2.0 percent, in the past 12 months, says an analysis of new government data by the Associated General Contractors of America. Slowing job gains may be a sign of labor shortage rather than weaker demand, says AGC. “Contractors report they […]
Total light vehicle sales are likely to reach 17.1 million units this year, down 1.4 percent from 2018 and above 17 million for the fifth straight year, says J.D. Power and LMC Automotive. As usual, sales were strongest for SUVs and trucks. U.S. auto sales rose for most foreign automakers during November. Toyota sales increased […]
State and locally funded construction is relatively healthy, but privately funded work is in decline, according to Steel Market Update’s latest analysis of Commerce Department data. Construction Put in Place (CPIP) expenditures data for October was released on Dec. 2. Through October, total construction had negative momentum every month since October last year. In the […]
The United Auto Workers and Fiat Chrysler Automotive reached a tentative labor agreement over the holiday weekend. The four-year agreement includes $9 billion of investments by the company that will add 7,900 jobs during the contract period, said the UAW in a press statement. Other terms of the contract are confidential until members are informed. […]
Trade disputes and uncertainty regarding U.S. economic growth are causing businesses to delay or cancel construction plans, said the Associated General Contractors of America in a new analysis of construction spending data. Construction spending declined 0.8 percent in October from September, but topped year-ago levels by 1.1 percent as decreases in private nonresidential, multifamily and […]