FMI recently released its fourth quarter report on the CIRT Sentiment Index. This index is a survey of members of the Construction Industry Round Table conducted quarterly. The CIRT is composed exclusively of approximately 115-120 CEOs from the leading architectural, engineering and construction firms doing business in the United States.
According to the report, all components to the overall index this quarter are flashing downward or displaying negative signals — even the factors that had been increasing and indicating a strong and expanding business environment, such as labor expenses, material costs, and productivity, have declined in this most recent feedback.
Following are some key findings that relate to business conditions in 2020:
- The fourth quarter of 2019 showed a pronounced decrease in the CIRT Sentiment Index as well as some decline in the Design Index.
- Respondents believe that U.S. monetary policy, the results of the U.S. presidential and congressional elections, and private sector investments are the top three factors that could influence a positive economic climate.
- Across the construction industry, respondents believe industrial, transportation and public works sectors are showing the most promise long-term.
For more detailed information, download the full report.