Ken Simonson

The worsening housing finance market appears likely to have varied impacts on construction. Lenders have tightened credit standards and raised rates for some-but not all-mortgage applicants.

Construction employment fell 12,000 to an 18-month low of 7.65 milltion. However, the three nonresidential categories-building, specialty trade contractors, and heavy and civil engineering construction-added 64,000 jobs (1.5%) over 12 months.

Nonfarm payroll employment increased 132,000 in June, seasonally adjusted, in line with the gain of  2,008,000 (1.5%) from June 2006 to June 2007, the Bureau of Labor Statistics (BLS) reported. The unemployment rate remained steady at 4.5%.

Nonresidential starts collected by Reed Construction Data totaled $31.4 billion in June, “a record-high level, 16% above the previous peak last November and 39% above year-ago June,” the firm announced recently.

Nonresidential construction is expected to remain positive all year.

Construction employment increased from February to March in 35 states, fell in eight plus DC, and was unchanged (or within 100 of prior levels) in seven. Compared to a year ago, construction employment climbed in 35 states, fell in 14, and was unchanged in DC and Vermont.

Nonfarm payroll employment, led by a 56,000-job jump in construction, rose 180,000 in March, seasonally adjusted, the Bureau of Labor Statistics reported.

Construction spending in January skidded 0.8%, at a seasonally adjusted annual rate (SAAR), from an upwardly revised December total, the Census Bureau reported on Thursday.

The producer price index (PPI) for finished goods slipped 0.2% in January, seasonally adjusted, and rose just 0.2% over the past 12 months, the Bureau of Labor Statistics (BLS) reported on Friday.

For the year, private residential spending fell 1.7%; private nonresidential surged 16%; and public spending increased 10%.