Second-Quarter Index Shows Increase in Nonresidential Construction
May 31, 2012

The Nonresidential Construction Index (NRCI) for the second quarter indicates a 1.7-point increase from the first quarter, according to the latest report from management consulting and investment banking provider FMI.

The NRCI shows that backlogs remain about the same at a median of eight months. However, all markets, with the exception of education construction, are expected to improve slightly over the next quarter. Productivity has also shown improvement and there is a continued increase in labor and material costs.

NCRI researchers say from last quarter to the second quarter: The overall economy increased from 68.7 to 72.8, construction business added 4.1 points to 65.4, the nonresidential building markets are up 10.4 points to 65.4, and material costs dropped 5.9 points, labor costs index dropped to 30.3 from 41.5, and productivity rose to 55.1.

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