The AVP Pulse Index this month dropped 0.4% month-over-month, while decreasing 0.5% year-over-year; and increasing 11.9% over the past 36 months. The proprietary AVP Pulse Index — a joint effort between mergers and acquisition advisors Allen-Villere Partners and Rock Products — illustrates the health of the industry in one single trend line, using relevant data that is updated monthly or quarterly.
“Solid gains in the Dodge Data Momentum Index (+2.4%), the Construction Backlog Indicator (+2.4%) and the Architecture Billings Index (+1.3%) helped offset declines elsewhere, including the NAHB/Wells Fargo Housing Market Index (-3%) and the Construction Confidence Index (-0.9%),” stated Pierre Villere of Allen-Villere Partners. “Our remaining indicators saw only tiny, less-than-1% movements. The biggest drag came from Industry Stocks, which took another hard hit at a disappointing (-6.4%). Still, the Index was only down -0.4% for the month. It slipped into negative territory year-over-year at -0.5%, but remains up a solid +11.9% over the past rolling 36 months.
“It is worth repeating that the AVP Pulse Index is a trend measure, like an arrow, albeit a crooked one; it measures a rolling 36-month period that points up or down depending on the direction of the construction industry. Despite the recent “flatness” in our industry nationally, we remain optimistic that current softness will prove temporary and that long-term fundamentals supporting the construction materials industry remain favorable.”