November 21, 2013
Nonresidential Construction Continues Sluggish Growth, According to Marcum Commercial Construction Index
New York City, NY - Marcum LLP, a top national accounting and advisory firm, today released its Marcum Commercial Construction Index for the third quarter of 2013. The index reveals sluggish growth in both private and public nonresidential construction spending during the period, with gains of less than one percent registered in both major segments.
Increased spending was observed in eight of the 16 nonresidential construction subsectors during August, however, the most recent month for which data are available. These gains were driven to a meaningful degree by the impacts of consumer spending on the size and composition of the U.S. economy. Gains were also registered on a year-over-year basis in 16 of the 20 largest U.S. metropolitan areas, further indication of broad economic recovery and its impact on a variety of construction markets.
"Mimicking the national economy, the nonresidential construction segment is associated with both private sector progress and public sector retrenchment," said Anirban Basu, Marcum's Chief Construction Economist and Chairman of Sage Policy Group. "Given lingering fiscal uncertainty emanating from the federal government as well as from many states, public construction is unlikely to rally any time soon. Private construction, however, is positioned to continue to recover in conjunction with a national economy now its fifth year of expansion – an economy that appears poised to accelerate in 2014."
"I'm pleased to report that we are seeing, around the country, job backlogs on the increase," said Joseph Natarelli, Marcum's National Construction Industry Group leader. "While the margin gains aren't ticking up in parallel just yet, we expect profitability to catch up as those backlogs become full."
The complete Marcum Commercial Construction Index can be viewed online at www.marcumllp.com/construction.
Marcum LLP's Construction Services Group provides strategic and timely accounting, audit, and consulting and taxation services to construction clients ranging from start-ups to multi-billion-dollar enterprises. The firm's technical experts serve on many industry boards and committees and regularly contribute to construction conferences and publications.
About Marcum LLP
Marcum LLP is one of the largest independent public accounting and advisory services firms in the nation, with offices in major business markets throughout the U.S., as well as Grand Cayman, China and Ireland. Headquartered in New York City, Marcum provides a full spectrum of traditional tax, accounting and assurance services; advisory, valuation and litigation support; and an extensive range of specialty and niche industry practices. The Firm serves both privately held and publicly traded companies, as well as high net worth individuals, private equity funds and hedge funds, with a focus on middle-market companies and closely held family businesses. Marcum is a member of the Marcum Group, an organization providing a comprehensive array of professional services.