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Florida Department of Transportation Highway Construction Leading Indicator Report

Slight declines in Street Construction PPI and lower Diesel Fuel prices suggest no upward price pressures for construction costs. Steep Heavy Construction Employment declines signal a continuing soft market for construction contractors. Stabilizing Housing Permit numbers and improving Home & Condo Sales suggest the declines in housing competition for construction capacity may have bottomed. 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 0.5% from January to February 2009. Diesel Prices decreased 4.2%. Residential Construction and Sales Activity - Florida Permit Activity in February 2009 increased by 22.1% from January 2009. Florida Home & Condo Sales increased by 18.6%. Labor Statistics - Florida's Unemployment Rate for February 2009 was 9.4%, higher than the 8.6% rate in January. Florida's Total Construction Employment decreased by 4.1%. Florida Heavy and Civil Construction Employment decreased by 5.1% to levels not seen since 1997. National Economic Indicators - The Purchasing Managers Index (PMI) for manufacturing activities increased to 35.8% in February 2009, a 0.6% increase from January's 35.6%.
Note: A PMI value of greater than 50% indicates that US manufacturing is expanding, while anything below 50% means that the industry is contracting.

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March 27, 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

INDICATOR DESCRIPTION National Cost Indicators
PPI Highway & Street Construction Diesel # 2 Price Per Gallon (Monthly Average)

Feb 2009 Value

Change from Last Month (%)

Note

200.8 $2.20

-0.5% -4.2%

-2.5% -35.0%

201.3 $2.24

See Graph See Graph

Residential Construction and Sales Activity
FL Residential Building Permits US Residential Building Permits FL Realtor Home & Condo Sales FL Single Family Home Median Price FL Condo Median Price 3,478 37,965 13,056 $141,900 $109,300 22.1% 4.7% 18.6% 1.7% -3.6% -40.7% -48.3% 17.9% -28.7% -37.8% 3,164 37,108 12,031 $140,700 $111,350 See Graph ($)

Labor Statistics
Florida Unemployment Rate US Unemployment Rate FL Total Construction Employment FL Heavy Civil Construction Employment 9.4% 8.1% 437,700 57,800 9.3% 6.6% -4.1% -5.1% 104.3% 68.8% -20.3% -18.6% 9.0% 7.9% 447,000 59,350 See Graph

National Economic Drivers/Indicators
US Federal Funds Rate ISM PMI 0.25% 35.8% 0.0% 0.6% -91.7% -25.9% 0.25% 35.7%

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March 27, 2009

Florida Department of Transportation Highway Construction Leading Indicator Report

58

PPI for Highway and Street Construction 250 240 230 220 210 200 190 180 170 160 150 140 130 120 110 100 5.0
61747 3634

Value of Residential Building Permits Issued in Florida

4.5 4.0 Monthly Value ($Billions) 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0

3634

Producer Price Index Value

US Average Price of Diesel No. 2 $5.00 $4.50 Size of Workforce (000s) $4.00 Price per Gallon ($) $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 85.0

Florida Heavy Construction Employment

80.0

75.0

70.0

65.0

60.0

55.0

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March 27, 2009

Florida Department of Transportation Highway Construction Leading Indicator Report

February 2009

Change From Last Month (%) 4.7% 22.1% 16.7% 1.7% 61.6% 15.1% -2.5% 344.9% 27.9% -10.4% 53.6% 18.8% 7.1% -35.5% 13.6% 12.3% -23.5% 19.2% -0.9% n/a 0.5% -6.1% -56.2% 18.0% 7.4%

Change From Same Month Last Year (%) -48.3% -40.7% 18.6% -28.7% -41.2% 28.6% -43.8% 143.9% 0.8% -17.1% -49.0% -28.5% -4.4% -77.6% 37.1% -30.3% -62.7% 19.8% -26.3% n/a 67.6% -36.1% -55.9% 22.5% -26.6%

Change in Year to Date Cumulative Value (%) -50.3% -52.0% 21.7% n/a -62.2% 33.4% n/a 22.8% 1.8% n/a -60.5% -26.6% n/a -63.8% 38.9% n/a -68.7% 24.3% n/a n/a 56.9% n/a -38.2% 24.7% n/a

3 Month Trend

National
New Residential Units Permitted 37,965 3,478 9,858 $141,900 446 1,906 $102,150 1,339 835 $147,750 258 500 $173,800 341 1,404 $214,400 487 2,445 $123,900 included in 4 409 $195,500 279 1,856 $131,400

Statewide
New Residential Units Permitted Single Family Home Sales Single Family Home Median Sales Price

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

District 2
New Residential Units Permitted Single Family Home Sales Single Family Home Median Sales Price

District 3
New Residential Units Permitted Single Family Home Sales Single Family Home Median Sales Price

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

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

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

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

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

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March 27, 2009