Wright Express Corporation (NYSE: WXS), a leading global provider of value-based business payment processing and information management solutions, in collaboration with IHS (NYSE: IHS), the leading global source of information and analytics, today released results of its Wright Express Construction Fuel Consumption Index (FCI), which indicated an increase of 1.4% in July versus its level the previous year.
Wright Express Construction Fuel Consumption Index Compared with Total Construction Put-In-Place (Graphic: Business Wire)The Wright Express Construction FCI measures national fuel consumption statistics for the construction industry, which provides an accurate and up-to-date indication of construction activity in the United States. “The results of the July 2012 Fuel Consumption Index indicate flat growth in the construction industry despite consistent year-over-year growth,” said Rick Pomerleau, vice president, corporate development at Wright Express. “The construction industry hit a speed bump in June, showing the industry is still on a slow path to recovery.” Wright Express worked with IHS to capture and analyze transaction data from its closed loop network of more than 180,000 fuel and vehicle maintenance locations, including over 90 percent of the domestic retail fuel locations and 45,000 vehicle maintenance locations. With this data, the Wright Express Construction FCI can be used to identify emerging trends within the construction industry and the national economy. The indicators were tested at monthly, quarterly, and annual frequencies, with the greatest insights produced using the year-over-year percent change of the monthly data. For July 2012, the Wright Express Construction FCI reported that fuel consumption by U.S. construction companies increased by 1.4% versus July 2011 and increased by 0.2% versus the previous month. The Wright Express Construction FCI, which is available monthly in advance of the U.S. Census Bureau figures on construction spending, is available at www.wrightexpress.com/fci. Last month’s Wright Express Construction FCI diverged from the increased construction spending levels evident in most of the government’s subsequent construction data releases. Construction spending excluding improvements – a good measure of activity – expanded by 0.7% in June. Private residential construction increased by 3.1%, again reflecting the year’s uptick in single-family housing starts. The decrease in June was reflected in housing permits, which decreased 3.7% in June to an annual rate of 755,000 due to a sharp drop in multi-family permits in the South. Total construction put-in-place increased by 0.4% in June.