Construction MMI: Construction Spending Rises, ABI Shows Growth – Steel, Aluminum, Copper, Stainless Steel, Rare Earths, Metal Prices, Forecasts
The Monthly Construction Metals Index (MMI) recovered 4.9% for this month’s reading.
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Construction spending in the United States
Construction spending in the United States reaches a seasonally adjusted annual rate of $ 1,568.8 billion in July, the Census Bureau reported earlier this month.
The July rate marked an increase of 0.3% from the previous month. Meanwhile, July’s figure jumped 9.0% from July 2020.
In the first seven months of the year, construction spending totaled $ 883.2 billion, up 6.2% year over year.
Private spending on construction reached a rate of $ 1,231.0 billion, an increase of 0.3%. Within private construction, residential construction reached an annual rate of $ 773.0 billion in July, up 0.5% from June. Non-residential construction reached $ 458.0 billion in July, down 0.2%.
Meanwhile, public construction reached $ 337.8 billion, up 0.7%. Educational construction totaled $ 79.7 billion, down 0.5%. Highway construction rose 1.9% to $ 94.5 billion.
ABI growth slows in July but remains in positive territory
The Architecture Billings Index, published monthly by the American Institute of Architects, published a reading of 54.6 for July. Any reading above 50 indicates growth in billing.
While the ABI remains on a strong run of index values above 50, the July index fell from 57.1 the month before.
In addition, the design contract index stood at 58.0, up from 58.9 the previous month.
“Although the breakneck pace of billing growth seen earlier this year slowed down in July, architectural firms continue to report very strong business conditions overall,” the ABI report said. “The ABI score of 54.6 for the month indicates that the majority of businesses continue to see their billings increase. Inquiries about new projects and the value of new design contracts also remain extremely high, with both still close to their historic highs at the start of this year. “
By region, the Midwest led the way with an ABI value of 58.3. Lagging behind the Midwest were the west (56.0), south (54.6) and northeast (54.1).
Overall, architectural firms are quite optimistic about their revenue outlook for the remainder of the year.
According to the results of the AIA monthly survey, 47% of firms reported that their revenues in the first half of 2021 were up from 2020. Additionally, 54% of architectural firms reported that they were expected an increase in revenues in the second half of 2021 compared to the first half of the year.
However, as continues to be a recurring theme across all industries, material availability remains a significant challenge.
When discussing the factors that could weigh on their revenue projections in the second half of 2021, 58% of companies surveyed cited rising prices for major building materials and products. Additionally, 53% indicated that supply chain disruptions and the availability of key building materials and products could be a problem.
Housing starts drop in July
Meanwhile, in the housing market, housing starts in the United States reaches a seasonally adjusted annual rate from 1.53 million in July, the Census Bureau reported.
The rate for July was down 7.0% from the previous month. However, the rate increased 2.5% year over year.
Single-family housing starts fell 4.5% to a rate of 1.11 million. For dwellings in buildings with five or more dwellings, the rate reaches 412,000.
Pending home sales drop 1.8%
In addition, pending home sales 1.8% drop in July, reported the National Association of Realtors.
July marked the second consecutive month of declining pending home sales.
“The market may be starting to cool slightly, but at the moment there is not enough supply to meet demand from potential buyers,” said Lawrence Yun, chief economist of NAR. “That said, stocks are slowly rising and home buyers should start to see more options in the coming months.”
Real metal prices and trends
The price of Chinese reinforcing steel fell 3.1% month over month to $ 810 per metric tonne on September 1. Chinese H-beam steel fell 1.4% to $ 845 per metric tonne.
The price of shredded scrap in the United States fell 4.4% to $ 483 per short ton.
European 1050 commercial aluminum sheet rose 13.0% to $ 4,290 per metric tonne.
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