Economic Report: Activity Up, Construction Sector Stable
Date Posted: December 12, 2022
Posted In: News,
From For Construction Pros: Construction industry leaders are reporting stable activity in November. Slow deliveries and pricing remain a challenge, while labor has improved. For the second month, concrete remains in short supply.
Construction industry leaders are reporting stable activity in November. Slow deliveries and pricing remain a challenge, while labor has improved. For the second month, concrete remains in short supply.
The Institute for Supply Management (ISM) issued its Services ISM Report on Business for November, which registered at 56.5%, showing growth for the 30th month in a row. The reading was higher than October’s. The ISM Services PMI index is a set of economic indicators based off surveys of private-sector companies in the services sector, which includes construction. Construction was the fourth fastest growing sector in the services industry report.
“In November, the Services PMI registered 56.5%, 2.1 percentage points higher than October’s reading of 54.4%,” said Anthony Nieves, chair of the Institute for Supply Management (ISM) Services Business Survey Committee. “The Business Activity Index registered 64.7%, a substantial increase of 9 percentage points compared to the reading of 55.7% in October.”
According to one executive in the construction industry, economic activity in November was, “Generally unchanged month over month. New business requests are solid, with costs rising steadily for materials, meals and lodging,” the respondent said.
Construction had the eighth highest growth of the sectors. The following sectors experienced the most growth in November, listed in order: real estate, rental and leasing, mining, agriculture, forestry, fishing and hunting, other services, construction, health care and social assistance, public administration, retail trade, professional, scientific and technical services, accommodation and food services, utilities, transportation and warehousing and educational services.
According to one mining executive, “The demand for energy services remains very strong for the foreseeable future.”