The AVP Pulse Index this month dropped 1.7% month-over-month, while increasing 4.6% year-over-year; and 14.6% 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.
“Once again, this month’s pulse index is subject to error, as four of the 10 metrics we process through our algorithm are government-issued figures, and work to compile these numbers has resumed but have yet to be released,” stated Pierre Villere of Allen-Villere Partners. “Utilizing the remaining measures, we can estimate what an accurate Pulse Index would look like this month. While we are missing critical government-issued statistics, we nevertheless saw the Dodge Momentum Index (-7.1%), the Architectural Billings Index (-8.3%), and the Industry Stocks Average Price (-8.2%) all tumble dramatically, posting some of the largest reversals we have witnessed in some time. 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 disruptions brought about by the uncertainty in Washington, we are optimistic this will come to an end eventually.”
The latest edition of The Pulse, the quarterly economic report from Allen-Villere Partners and Rock Products, can be viewed here.
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