“The fact that the data surrounding both new project inquiries and design contracts have remained positive every month this year, while reaching their highest scores for the year, is a good indication that both the architecture and construction sectors will remain healthy for the foreseeable future,” says Kermit Baker, chief economist with AIA. “This growth hasn't been an overnight escalation, but rather a steady, stable increase.”

Dodge Data says that June's lift in the Momentum Index was due to a 4.8% increase in the institutional component, while the commercial component fell 1.3%. The Momentum Index has exhibited substantial strength over the past year, with the institutional and commercial components trading off as the driver of growth almost on a month-to-month basis, according to Dodge Data.

Although the commercial component of the Momentum Index declined in May, it's up 11.8% year over year, while the institutional component is 9.5% above a year ago. Dodge Data says the overall rising trend for both sectors continues to suggest that construction activity will remain healthy through the end of the year.

Largest of the commercial building projects that entered the planning stage in June were the $300-million Palace Station Hotel renovation in Las Vegas and a $200-million office/warehouse building in American Canyon, CA. For the institutional building sector, the leading projects were the $150-million Legacy Sports Complex in Glendale, AZ and the $100-million Highmark Health Cancer Facility in Pittsburgh. In all, seven projects with a value of $100 million or more entered planning last month.

As other indicators of construction activity have shown Y-O-Y gains, it stands to reason that employment in the sector would have done the same. The latest analysis of federal employment data from the Associated General Contractors of America, issued in late June, showed that construction employment increased in 245 out of 358 metro areas between May '16 and May of this year, declined in 59 and stagnated in 54. AGC says construction employment gains in many parts of the country are occurring even as most firms report difficulty finding qualified workers to hire.

“Construction employment gains in many parts of the country likely would have been even more robust if it were easier for most firms to find qualified workers,” says Ken Simonson, chief economist at AGC. “As a result of tight labor market conditions, many firms are opting to invest more in training, find ways to become more efficient or use new techniques like off-site prefabrication or robotics to reduce labor needs.”