A Federal Reserve report today showed that U. S. manufacturing output slowed again in February, continuing a six-month trend that is the result of an increasingly strong dollar. The 0.2% decline was attributable to a 3.0% decline in auto production, with rising personal consumption offsetting the drop in automobiles. The report follows on the heels of Bureaus of Economic Analysis data that showed consumer spending slowing, although the same report showed personal disposable income up 0.4% and household income up 0.3% in January.
The Fed will be the biggest newsmaker this week, when its Open Markets Committee releases a statement Wednesday following its two-day meeting. Markets will be anxious to see if the Fed continues to discuss patience with the economic expansion (with some analysts literally looking for the word "patient" to be included or not) or if rate Hawks have seen enough growth to convince the Committee to raise rates sooner that September. The impact of an earlier rate hike will mostly be psychological - although it could trigger a brief selloff in stocks. Any increase in rate later this year should be less than half-percent and have little effect on borrowing or development.
The recent Redevelopment Assistance Capital Program applications had a few interesting projects that have stayed mostly below the radar. The Pittsburgh Zoo & PPG Aquarium applied for a grant to assist with its $30 million expansion. Robert Morris University is planning a $15 million convocation center. There were several hospital clinical projects among the applications, including grants sought for $5 million Childrens Hospital OR 14 and a $9 million NICU at West Penn Hospital.
Project News
Bids are due April 8 on the Brooks & Allard Elementary School project at Moon Area, worth a combined $21.5 million. A new 52,000 sq. ft. elephant barn in Somerset County for the Pittsburgh Zoo & PPG Aquarium is out to bid. Email for the list of invited contractors. Google is taking proposals from four architects for its tenant improvements at Bakery Square 2.0. Ensinger Plastics is taking CM proposals from four generals for its $22 million new plant on Racetrack Road. Glade Run Lutheran Services awarded the contract for the new $15 million Jeremiah Village in Zelienople. Learn who is involved at BuildingPittsburgh. TEDCO Construction has started work on the final phase of Duquesne Towers renovations, a $4 million project to update floors six thru eight.
In West Virginia, Massaro Corp. was the low design/build contractor for Fairmont State's $28.8 million student residences. Rycon was low on WVU's 2nd/3rd floor renovations at the AERB Building at $2,364,790.
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| Young Constructors' Chair Dustin Giffin with speaker Dave Spigelmyer from the Marcellus Shale Coalition at the YC Kickoff at Olive or Twist, March 11. |
More information about the market is available at BuildingPittsburgh.
