First quarter GDP was announced April 29 and the results were not surprising, although not exactly as forecast. Economists expected the combination of severe winter weather, rising dollar, plunging oil and an extended dockworkers strike to drop GDP to around one percent from Jan-March. The government's reading (which is the first of three estimates) was that output grew only 0.2% during the quarter. Big declines in output from the mining sector (which includes oil exploration) and exports (which were dampened by a strong dollar) were cited as the main culprits in the weak quarter
Similar conditions affected the first quarter of 2014, which saw a 2.1% decline in GDP before output roared back with 4.6% and 5% GDP growth in the following two quarters. Economists hope for a similar effect in 2015 and are forecasting rebounds beginning with spring.
The reduced GDP hasn't appeared in the job market. There was weak hiring in March but April's new jobs number topped 220,000, according to the Bureau of Labor Statistics on May 8. Big gains in professional services, construction and healthcare were offset slightly by drops in mining/oil and gas. Unemployment fell to 5.4%. More upbeat was the news that the U-6 unemployment rate is falling more rapidly and the number of persons working part-time for economic reasons fell by 125,000.
Project News
The prospects for a green light for the Shell Monaca ethane cracker got a boost at the project's DEP air pollution control permit hearing on May 7. Opponents of the project were fewer than expected and an unusual number of citizens spoke in favor of the project. Opponents have already pointed to the DEP's schedule for permit review to conclude that the approval is a fait accompli. DEP approval of the permit would remove a big hurdle for the project but Shell's final analysis of the economic feasibility remains.
Look for an in-depth analysis of the crackers planned for the region in the May/June BreakingGround this week or check out the digital version today.
The commercial sector of the industry continues to drive construction in Pittsburgh. Within the past two weeks several high-profile leases were announced for office space. Rice Energy grabbed 150,000 sq. ft. in Burns & Scalo's third Zenith Ridge building. PPG announced it was renewing and slightly increasing its 350,000 sq. ft. lease in its iconic headquarters building. And JLL announced it was going to take 54,000 sq. ft. and put its name on the office at Millcraft's Tower 260 at the Gardens at Market Square. JLL also took qualifications from 13 developer teams for the offices and hotel proposed by CMU for Forbes Avenue at the Junction Hollow.
In the industrial and office segment, Paragon Foods started work on its new 86,0000 sq. ft. facility in RIDC Thorn Hill. Work started on the 56,000 sq, ft. buildout for Cabot Oil & Gas at 2000 Park Lane. Buncher started work on the 76,000 sq. ft. Building 2000 at Jackson's Pointe Commerce Park. Facility Support Services was awarded the $3.3 million. See who is building the projects at BuildingPittsburgh. Bechtel Marine Propulsion advanced training systems in West Mifflin. Yarborough was awarded the Hampton Twp. School District's vestibule reconstruction program.
More information about the market is available at
BuildingPittsburgh
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| Guy Buzzelli Award winner Michael Mascaro (center) with brothers Jeffrey (left) and John at the Muscular Dystrophy Association Champions of Spirit awards. |
