With the current economic downturn, AZAGC would like the construction industry and its partners to have the latest economic news. The following information comes from a variety of sources and is intended to help our industry get a better understanding of state and national economic activity.
On a regular basis, AGC’s Chief Economist Ken Simonson relays economic information about the construction industry. AGC’s latest Data Digest and Construction and Materials Outlook are tools for contractors and owners to see what’s going. View the latest state-by-state unemployment numbers and latest PPI Tables. Click here for the non-residential construction industry’s impact on Arizona.
Tracking Arizona’s Recovery
Click here to get the Joint Legislative Budget Committee’s (JLBC) latest on Arizona’s; Total Non‐Farm Employment; Initial Claims for Unemployment Insurance; State Sales Tax Collections – Retail Category; State Sales Tax Collections – Contracting Category; Single Family Building Permits; Maricopa County Pending Foreclosures; and, the Coincident Index. In order to keep decisionmakers up-to-speed on the latest economic news, JLBC puts together this Monthly Fiscal Highlight.
Wells Fargo Reports
On a regular basis, AZAGC receives reports from the Well Fargo Economic Group pertinent to Arizona, the construction industry in Arizona and the nation. Below are links to a few of those reports.
News from the Legislature’s Finance Advisory Committee
In October the Finance Advisory Committee was given this report about Arizona’s economy. According to the report the Federal Reserve Bank of Philadelphia’s coincident index gauges current economic activity in each state. The index combines 4 indicators: employment, average hours worked in manufacturing, unemployment rate, and inflation adjusted wages.
In August, 25 out of 50 states had increases in their coincident indexes. Arizona’s coincident index increased by 0.3% compared to the prior month. Year-over-year, the Arizona index is 2.9% above last year, which is the 6th highest growth rate in the country. While this is a significant improvement, Arizona’s index is still (11.2)% below its peak, which occurred in August 2007.
U.S. Commerce Department’s Value of Construction Put in Place
The Value of Construction Put in Place Survey provides monthly estimates of the total dollar value of construction work done in the U.S. The United States Code, Title 13, authorizes this program. The survey covers construction work done each month on new structures or improvements to existing structures for private and public sectors. Data estimates include the cost of labor and materials, cost of architectural and engineering work, overhead costs, interest and taxes paid during construction, and contractor’s profits. Data collection and estimation activities begin on the first day after the reference month and continue for about three weeks. Reported data and estimates are for activity taking place during the previous calendar month. The survey has been conducted monthly since 1960.
Arizona needs to think strategically for long term economic vitality
Matthew Murray, a state budget expert and economics professor at the University of Tennessee, discusses the economic challenges facing Arizona. Murray, chief author of the report “Structurally Unbalanced: Cyclical and Structural Deficits in Arizona” by Morrison Institute for Public Policy and Brookings Mountain West, calls for a greater emphasis on long-term thinking and planning with a focus on balance. See the video.