The AVP Pulse Index this month dropped 1.5% month-over-month, while increasing 3.2% year-over-year; and 8.2% 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.
“But for the Construction Confidence Index, which was up 2.2% and the less-than-1% tiny movements in some of our other indicators, big downward moves were experienced last month, including the Dodge Data Momentum Index (-1.9%), the NAHB/Wells Fargo Housing Market Index (-2.0%) and the Architectural Billings Index (-7.9%) which all served to downdraft the entire Index,” stated Pierre Villere of Allen-Villere Partners. “But the biggest drag came from Housing Starts, which came in at a woeful (-15.4%).
“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,” Villere concluded.