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Firm: Political infighting, uncertainty slowing nonresidential construction

By |  December 5, 2013

FMI, a management consulting and investment-banking firm with an index that measures nonresidential construction growth, released its latest report that shows a 2.9-percent fourth-quarter drop for the category. FMI gave the fourth quarter a score of 57.4 on its Nonresidential Construction Index (NRCI). A score of 50 indicates growth, the firm says. Two of the reasons FMI cites for the slight decline are political infighting and economic uncertainty.

Productivity slid in the fourth quarter as well, FMI says. Its 48.6 score is the lowest FMI has given since the second quarter of 2008. Ultimately, FMI says attention to productivity and profit margins will be keys to sustaining growth moving ahead.

Building construction continues to improve since 2012, the firm adds, but growth is still unsteady as its score slipped 7.5 points to 64.1 this quarter. Material and labor costs also continue to rise, causing the overall NRCI to fall.

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