Florida Department Of Transportation Highway Construction Leading Indicator Report

Florida Department of Transportation Highway Construction Leading Indicator Report

Lower levels for both the Highway and Street Construction PPI and diesel fuel prices reflect an end to the cycle of upward prices for construction costs. Employment declines signal a continuing soft market for construction contractors. Housing permit values appear to be fluctuating at a modest level compared to recent historical levels. Stimulus plan initiatives may influence these trends over the next several months. National Cost Indicators - The producer price index for Highway and Street Construction decreased by 0.4% from December 2008 to January 2009. Diesel price decreased 6.4%. Residential Construction and Sales Activity - Florida permit activity in January 2009 decreased by 10.4% from December 2008. Florida sales decreased by 22.4%. Labor Statistics - Florida's unemployment rate for January was 8.6%, higher than the 7.6% rate in December. Florida's total construction employment decreased by 3.9%. Florida heavy and civil construction employment decreased by 5.0% which is now below the January 2003 figure. National Economic Indicators - The Purchasing Managers Index (PMI) for manufacturing activities increased to 35.8% in January 2009, a 10.5% increase. Note: A PMI value of greater than 50% indicates that US manufacturing is expanding, while anything below 50% means that the industry is contracting.

Page 1 of 4 Pages

March 5, 2009

Florida Department of Transportation Highway Construction Leading Indicator Report Change from Average Value Same Month this Calendar 3 Month Last Year (%) Year to Date Trend

Jan 2009 Value

Change from Last Month (%)

PPI Highway & Street Construction

201.8

0.4%

-1.4%

201.8

See Graph

Diesel # 2 Price Per Gallon (Monthly Average)

$2.29

-6.4%

-30.7%

$2.29

See Graph

FL Residential Building Permits

2,849

-10.4%

-61.0%

2,849

See Graph ($)

US Residential Building Permits

36,250

-9.0%

-52.3%

36,250

FL Realtor Home & Condo Sales

11,006

-22.4%

22.4%

11,006

FL Single Family Home Median Price

$139,500

-10.3%

-33.1%

$139,500

FL Condo Median Price

$113,400

-13.2%

-40.4%

$113,400

Florida Unemployment Rate

8.6%

13.2%

87.0%

8.6%

US Unemployment Rate

7.6%

5.6%

55.1%

7.6%

FL Total Construction Employment

459,300

-3.9%

-17.1%

459,300

FL Heavy Civil Construction Employment

60,600

-5.0%

-17.9%

60,600

US Federal Funds Rate

0.25%

0.0%

-92.9%

0.25%

ISM PMI

35.8%

10.5%

-29.4%

35.8%

INDICATOR DESCRIPTION

Note

National Cost Indicators

Residential Construction and Sales Activity

Labor Statistics

See Graph

National Economic Drivers/Indicators

Page 2 of 4 Pages

March 5, 2009

Florida Department of Transportation Highway Construction Leading Indicator Report

58

250 240 230 220 210 200 190 180 170 160 150 140 130 120 110 100

Value of Residential Building Permits Issued in Florida 5.0

61747

4.5

3634

3634

4.0 Monthly Value ($Billions)

Producer Price Index Value

PPI for Highway and Street Construction

3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0

US Average Price of Diesel No. 2

Florida Heavy Construction Employment 80.0

$5.00 $4.50

Price per Gallon ($)

$3.50 $3.00 $2.50 $2.00

Size of Workforce (000s)

75.0 $4.00

70.0

65.0

60.0 $1.50 $1.00

55.0

Page 3 of 4 Pages

March 5, 2009

Florida Department of Transportation Highway Construction Leading Indicator Report

Jan-09

Change From Last Month (%)

Change From Same Month Last Year (%)

Change in Year to Date Cumulative Value (%)

36,250

-9.0%

-52.3%

-52.3%

New Residential Units Permitted

2,849

-10.4%

-61.0%

-61.0%

Single Family Home Sales

8,450

-23.6%

25.4%

25.4%

$139,500

-10.3%

-33.1%

n/a

3 Month Trend

National New Residential Units Permitted

Statewide

Single Family Home Median Sales Price

District 1 New Residential Units Permitted Single Family Home Sales Single Family Home Median Sales Price

276

-14.0%

-76.1%

-76.1%

1,656

-22.0%

39.4%

39.4%

$104,750

-14.7%

-46.4%

n/a

District 2 New Residential Units Permitted

301

-6.8%

-61.7%

-61.7%

Single Family Home Sales

653

-37.9%

3.2%

3.2%

$164,850

-5.5%

-10.1%

n/a

New Residential Units Permitted

168

-16.0%

-70.6%

-70.6%

Single Family Home Sales

421

-34.5%

-24.3%

-24.3%

$162,300

-5.3%

-12.2%

n/a

Single Family Home Median Sales Price

District 3

Single Family Home Median Sales Price

District 4 (and 6) New Residential Units Permitted Single Family Home Sales Single Family Home Median Sales Price

529

-34.8%

-40.2%

-40.2%

1,236

-26.9%

41.1%

41.1%

$191,000

-12.3%

-39.2%

n/a

District 5 New Residential Units Permitted Single Family Home Sales Single Family Home Median Sales Price

637

2.6%

-72.2%

-72.2%

2,051

-23.3%

30.1%

30.1%

$125,050

-6.2%

-29.4%

n/a

District 6 New Residential Units Permitted Single Family Home Sales Single Family Home Median Sales Price

included in 4

n/a

n/a

n/a

407

-5.6%

47.5%

47.5%

$208,100

-3.4%

-38.2%

n/a

n/a

District 7 New Residential Units Permitted Single Family Home Sales Single Family Home Median Sales Price

637

12.9%

-25.1%

-25.1%

1,573

-15.3%

27.4%

27.4%

$122,400

-16.0%

-34.6%

n/a

Note: District permit data does not include non-metro area permits.

Page 4 of 4 Pages

March 5, 2009