The AVP Pulse Index for June

June 24, 2024 – The AVP Pulse Index this month rose 0.1% month-over-month, while increasing 3.8% year-over-year.  The index is up 10.5% over the past 36 months. The proprietary AVP Pulse Index – a joint effort between mergers and acquisition advisors Allen-Villere Partners, and Rock Products – illustrates the health of the industry in one single trend line, using relevant data that is updated monthly or quarterly.

“In the latest update on the construction materials industry, the AVP Pulse Index experienced a modest increase of 0.1% for the month, but continues to gain ground with steady, but not overly strong, year-over-year growth of 3.8%,” stated Pierre Villere of Allen-Villere partners. “Over the past 36 months, the index increased 10.5%, indicating a slight slowdown in growth within the sector compared to earlier this year. Industry stocks hit new all-time highs earlier this year, and there has been what we believe is a rotational pullback as profit-taking takes place, yet profitability remains steady, if not strong, at several of the major multi-nationals. The first quarter saw big increases in cement consumption, with a 28.9% increase in monthly consumption, and 10.3% increase year-over-year, and further buoyed by a 5.7% increase in housing starts for the month. Amazingly, despite an adverse mortgage interest rate environment, year-over-year housing starts have held steady, down only a small -0.6%. Other strong showings in the Dodge Data Momentum Index and the Architectural Billings Index added strength to our algorithm and kept our Index in positive territory.”

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