February 27, 2013
On Feb. 26, WEX Inc. and IHS together released the results of its WEX Construction Fuel Consumption Index (FCI). The WEX Construction FCI measures national fuel consumption statistics for the construction industry.
WEX worked with IHS to capture and analyze transaction data from its closed-loop network, which includes over 90 percent of the domestic retail fuel locations. With this data, the WEX Construction FCI can be used to identify emerging trends within the construction industry and the national economy.
The indicators were tested at monthly, quarterly, and annual frequencies, with the greatest insights produced using the year-over-year percent change of the monthly data. For January 2013, the WEX Construction FCI reported that fuel consumption by U.S. construction companies increased 5.8 percent versus January 2012, and increased 0.4 percent versus December 2012.
The January 2013 WEX Construction FCI reflected the nearly flat growth indicated by the seasonally adjusted index in most of the government’s subsequent construction data releases. Construction spending, excluding improvements (a good measure of activity), decreased by 0.6 percent in December; however, private residential construction rose by 1.6 percent.
December housing permit statistics were mixed, with total permits increasing by 0.3 percent. Housing starts jumped 12.1 percent in December, to an annual rate of 954,000 ― the highest since June 2008. The construction industry added 28,000 jobs in January, after gaining 30,000 in December, but the gain in employment was not accompanied by a noticeable uptick for the WEX Construction FCI. Total construction put-in-place, which is also released a month later than the WEX Construction FCI, rose by 0.9 percent in December.