by Rebecca Walker — May 25, 2009—FMI’s Nonresidential Construction Index (NRCI) is a quarterly report tracking economic trends in the U.S. nonresidential construction sector based on the opinions and experience of top construction industry executives serving as panelists for the last seven quarters. The NRCI is scored on a 100-point scale with a score below 50 indicating contraction and a score above 50 indicating growth.
The NRCI now stands at 45.0, versus 35.6 last quarter. It appears construction industry executives are getting over the shock of the rapid slowdown and are beginning to rethink their markets and strategies. There are some signs of optimism in this quarter’s report, but most panelists expect the remainder of 2009 to be a continuing challenge to find new work and avoid deeper staff cuts. The federal stimulus has yet to be felt by nonresidential contractors. Only 12 percent of panelists have seen any effects of the American Recovery and Reinvestment Act of 2009 (ARRA).
FMI is a leading provider of management consulting and investment banking to the worldwide construction industry.
