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Is construction cooling? Several surveys hint at a slowdown

Is construction cooling? Several surveys hint at a slowdown

The Wells Fargo survey found that 62 percent of executives polled see construction industry expansion in the next two years NICK AGRO, REGISTER FILE PHOTO

Construction has been red hot in recent years, but a series of surveys suggest industry bosses see a slight cooling in 2016.

An industry confidence index of contractors and equipment distributors, crafted from a survey conducted by Wells Fargo Bank, dipped to 108 for 2016 from a record 130 in 2015. Please note that any score above 100 suggests strong optimism – a level surpassed each year since 2012.

The survey found that 62 percent of executives polled see construction industry expansion in the next two years, and 52 percent expect profits to improve this year.

“The construction industry is telling us that overall sentiment remains positive, though not as overwhelmingly positive as the previous year,” said John Crum of Wells Fargo Equipment Finance.

Home developer enthusiasm may have chilled a bit, too.

A survey of homebuilding executives by the National Association of Home Builders and Wells Fargo hit its cyclical peak last fall. The Housing Market Index was at 60 in January, after hitting 65 in October. With this index, any score above 50 denotes optimism.

“January’s reading is right in line with our forecast of modest growth for housing,” NAHB Chief Economist David Crowe says.

Contact the writer: jlansner@ocregister.com

The Orange County Register – News Headlines : Real Estate News