WEX Releases Monthly Construction Fuel Consumption Index (FCI) Results
U.S. Construction Industry Fueling Decreased 0.6% Year-Over-Year in May, Up
0.8% versus Previous Month
SOUTH PORTLAND, Maine -- July 9, 2013
WEX Inc. (NYSE: WEX), a leading provider of corporate payment solutions, in
collaboration with IHS, Inc., the leading global source of critical
information and insight, today released results of its WEX Construction Fuel
Consumption Index (FCI), which indicated a decrease of 0.6% in May versus its
level at the same time the previous year.
The WEX 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.
WEX worked with IHS to capture and analyze transaction data from its closed
loop network, which includes over 90 percent of the domestic retail fuel
locations. With this data, the WEX 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 May 2013, the WEX Construction FCI reported that fuel
consumption by U.S. construction companies decreased 0.6% versus May 2012 and
increased 0.8% versus the previous month.
The WEX Construction FCI is available at
Last month’s WEX Construction FCI reflected the first year-over-year decline
since September 2012, and additional government data releases were generally
more positive than the 0.7% decline indicated by the seasonally-adjusted index
in April. Private residential construction increased by 1.7% in April and
construction spending excluding improvements – a good measure of activity –
rose by 0.9% in the same period. Housing permits surged by 14.3% to an annual
rate of 1,017,000, which is the highest rate since June 2008; however, housing
starts dropped in April by 16.5% to an annual rate of 853,000. Total
construction put-in-place, which is released a month later than the WEX
Construction FCI, increased by 0.4% in April. The total employment report was
positive with an increase of 175,000 jobs, and the construction industry
gained 7,000 jobs, indicating that the private sector is largely shrugging off
the federal government spending sequester.
According to the IHS analysis, alongside the month-to-month gain in May for
the WEX Construction FCI, the housing market has also been showing signs of
improvement. New home sales increased by 2.3% in April to a 454,000-unit
annual rate. Meanwhile, existing home sales rose 0.6% in April and total
inventory increased by 11.9%, although much of the increase was seasonal and
inventories remain extremely lean.
Home prices continue to rise as a result of these lean inventories, low
interest rates, the growing economy, and the decreased share of distressed
homes. These higher home prices, in turn, are bringing more builders into the
game. The housing market is expected to continue to improve and outperform the
rest of the economy over the next few quarters, due to the low level of
housing inventory and low interest rates. The recovery in housing would be
even stronger if it was not for the difficult lending requirements facing
The WEX Construction FCI for May 2013 is available at
About WEX Inc.
WEX Inc. (NYSE: WEX) is a leading provider of corporate payment solutions.
From its roots in fleet card payments beginning in 1983, WEX has expanded the
scope of its business into a multi-channel provider of corporate payment
solutions representing more than 7.5 million cardholders and offering
exceptional payment security and control across a wide spectrum of business
sectors. The Company’s operations include WEX Bank, Fleet One, Pacific Pride,
rapid! PayCard, Wright Express Australia, Wright Express New Zealand and
CorporatePay Limited, England, as well as a majority equity position in UNIK
S.A., Brazil. WEX and its subsidiaries employ more than 1,300 associates. For
more information about WEX, please visit www.wexinc.com.
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News media contact:
Jessica Roy, 207-523-6763
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