This morning's report on 2nd quarter gross domestic product was a big relief for businesses. Commerce Dept. reported that GDP rose 4% from April-June, This was dramatically higher than expected and the growth gave credence to the theory that the 1st quarter decline (which was downgraded to -2.1%) was due to winter storms and the adjustment to Affordable Healthcare Act. During the 2nd quarter consumers spent big on durable goods (+14%) and spending rose slightly on healthcare. There were also significant gains in construction and business spending.

Local construction market news from the 2nd quarter wasn't as rosy. First the good news. During the first six months of 2014, nearly 500 new residential units were started in the City of Pittsburgh. That's new construction only. The vast majority of those were apartments, with more on the way. Population growth and demographics are supporting the activity, which is on a par with Cranberry Twp. during its boom days.See where the residential activity was by checking BuildingPittsburgh. 

 The rest of the construction market results for Jan-June 2014 aren't as rosy. Residential construction overall was down 37.3%. The decline reflects a steep decline in apartments compared to 2013 but that's because 2013 was extraordinary. The action in 2014 is still 25% ahead of normal. Nonresidential construction is down almost 30% year-over-year. Some of the blame lies with the weather but most is due to delayed decision-making by owners. The second half of the year is shaping up to be significantly better but the best that can be hoped for in 2014 is to set up a good start for 2015.

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