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Nonresidential Construction Index remains constant

Words: Sarah Al-mortajiFMI, a leading provider of management consulting and investment banking to the engineering and construction industry, announces the release of the 2013 Third Quarter Nonresidential Construction Index report. The NRCI score of 60.3 is a .2-point improvement over Q2.

NRCI = 60.3

Although the numbers aren't drastically rising, the sustainability and continuing upward movement is encouraging. This score remains the highest score for the NRCI index since Q1 2009. The index for the overall economy rose to 72 points and the combined index sentiment for economies where panelists are doing business rose 3.2 points.

Cost of construction materials, cost of labor and productivity continue to hold down the index. Additionally, investments in technology, equipment and training are needed to keep the economy from going stagnant.

Panelists for this quarter's NRCI suggest that the uncertainty for investments is a result of the immigration/labor bills, delays in implementation of "Obamacare" and the impact of residential growth on nonresidential construction. These issues are causing the industry to sit back and wait to see the outcomes before making any risky investments.

To download a copy of the full report, click here.
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