Construction output seen to the end of June 2011

Construction output seen to the end of June 2011

Construction output in the US rose +0.4% in June to US$ 842 billion on a rolling 12-month basis. This took the sector +7.0% higher than the US$ 787 billion in construction output seen in the year to the end of June 2011.
General Electric, facing complaints in the United States about rising prices for its compact fluorescent bulbs, recently noted in a statement that if the rate of inflation over the last 12 months on the rare earth element europium oxide had been applied to a $2 cup of coffee, that coffee would now cost $24.55.
 The increase was driven by a rise in private construction, which grew +0.7% month-on-month and +13.1% year-on-year. In contrast, publicly funded work was flat with May 2012 and down -3.7% compared to the position a year ago.
A pack of three 11-watt G.E. compact fluorescent bulbs — each the lighting equivalent of a 40-watt incandescent bulb — was priced on Thursday at $15.88 on Wal-Mart’s Web sitefor pickup in a Nashville, Ark., store. The average price for fluorescent bulbs has risen 37 percent this year, according to the National Electrical Manufacturers Association.
Within the private sector, the most pronounced increase from May was in the residential sector, where output was up +1.3% in the month to US$ 265 billion for the year to the end of June. This saw spending on house building rise +12.1% compared to June 2011, when the figure stood at US$ 236 billion for the year.
The private non-residential sector only grew +0.1% month-on-month, but at US$ 302 billion, it was +14.0% higher than the position a year ago. The most pronounced rises have been in the lodging, educational, power and manufacturing construction segments.
Wal-Mart, which has made a big push for compact fluorescent bulbs, acknowledged that it needed to raise prices on some brands lately. “Obviously we don’t want to pass along price increases to our customers, but occasionally market conditions require it,” Tara Raddohl, a spokeswoman, said. The Chinese actions on rare earths were a prime topic of conversation at a conference here on Thursday that was organized by Metal-Pages, an industry data firm based in London. Public construction meanwhile was down -3.7% compared to the 12 months to the end of June 2012, at US$ 274 billion. Almost every sub-sector of the industry has seen a decline, with the most striking falls in the residential, office, commercial, power and conservation sectors.