McKonomics

ABC Unveils New Construction Backlog Indicator

Associated Builders and Contractors (ABC) recently released a Construction Backlog Indicator (CBI), a forward-looking measurement reflecting the amount of work to be performed by contractors in the months ahead.  

The report is a key economic indicator as it offers a specific report on US commercial, institutional, industrial and infrastructure construction industries. The most recent report shows the nation's nonresidential construction industry rebounded in May to 6.3 months of backlog, up from 6.2 months in April, but still down by roughly 24 days since November 2008. 

Keep an eye on this report as it will be a true indicator of when this economic downturn is ending.

The International Reach of Central PA

In this week's Podcast Scott Heintzelman speaks with Tina Weyant, Executive Director of the World Trade Center of Central PA. Join in as Scott and Tina discuss the purpose of the World Trade Center of PA and how it serves the businesses of the Central PA region.

Stay tuned over the coming weeks as we plan to interview other experts in the fields that impact our economy the most.  Enjoy the show, and check back for future episodes!

Click here for the Podcast or subscribe.

Click here to request for a written transcript of the interview.

Be sure to check out Tina and the World Trade Center of Central PA online at www.wtccentralpa.org

Commercial Real Estate: How Bad Is It?

Commercial real estate is bad… How bad is it?  Some have suggested even if it is a problem, it is much smaller than the residential crisis.  Some people have even questioned if it even impacts them.  Many are calling it a ticking time bomb.  What is the status of commercial real estate?

Let me start by saying that I am not an expert on commercial real estate.  The things that I do know I have learned by reading and listening.  Let’s start with some facts.  Currently, 26 percent of all loans in FDIC insured bank portfolios are backed by the commercial real estate market.  Residential and other nonresidential real estate loans make up about 40 percent.  So the commercial real estate sector is a bit smaller, but not by a lot.  It still comprises over $3 trillion in outstanding loans.  Obviously this entire $3 trillion is not at risk, but how much is?

How Much Stimulus Funding is Going to Your County?

Back on February 17, 2009, the American Recovery and Reinvestment Act was signed into law.  This act is commonly referred to as the stimulus act.  If you are like me, you probably wonder how the nearly $780 billion is being spent.  Well, here is a great website by ProPublica which allows you to search by county and find information about stimulus spending in your area.

The information is listed by state and county and broken down by unemployment rate, total stimulus spending and spending per capita. Each county has a list of project spending as well.  I think this is a very informative website.  I encourage you to review your local information in order to be informed how your tax dollars are being spent.

The Economy: Green Shoots or The Worst is Yet to Come

A few months ago Ben Bernanke, chairman of the Federal Reserve Board, stated during an interview with 60 Minutes that he detected “green shoots” of economic recovery.  Since then many journalists and analysts have been using the phrase and trying to determine if they too see the “green shoots.”  But now over three months later, are we really seeing “green shoots” or have we not yet hit the bottom?

Headlines tell us that US economy appears poised to start growing again.  The GDP report came out this week and only fell at a 1% annual pace (better than expected).  Large banks are reporting profits. Housing had an uptick in sales and prices this week.  All these headlines seem to tell us that “green shoots” are sprouting up.  But is that really the case?