Construction Compensation Still Stagnant, Real GDP Grows
Nonfarm payroll employment increased from in 260 of the nation’s 372 metropolitan areas from March 2010 to March 2011. Construction employment rose in 138 metro areas out of the 337, according to AGC Data DiGest.
Private-industry compensation (wages, salaries and benefits) increased 0.5% in 1Q11 while construction compensation was unchanged for the second straight quarter and up only 0.6% over four quarters, the smallest increase of any industry. Construction wages and salaries were unchanged for the quarter and rose 0.5% over the year-earlier quarter.
Real (net of inflation) GDP grew at 1.8% seasonally adjusted annual rate in the first quarter, down from a 3.1% rate in 4Q10. Real private investment in nonresidential structures fell 22% while real private residential investment fell 4.1%. As the local, federal, and state governments cut back on spending, real government investment in structures fell 19%.Real GDP increased 1.9% in 2010, as 20 of 22 industry groups contributed to real GDP growth, BEA reported on Tuesday. Real value added for the construction industry fell 3.7%; nevertheless, that was the industry’s slowest rate of decline since 2006, BEA noted.
After slimming down inventory and wasted space to cut costs, some manufacturers are tired of the JIT way of thinking, and are now in demand for warehouse construction.
Totals for hotel projects and rooms under construction “have fallen to lows not seen since the 1990s,” consultancy Lodging Econometrics reported today.(Source: AGC Data DiGest)