Wright Express Corp : Wright Express Releases Monthly Construction Fuel Consumption Index (FCI) Results
04/19/2012| 08:05am US/Eastern
U.S. Construction Industry Fueling Up 3.5% Year-Over-Year in March; Up
3.8% versus Previous Month
Express Corporation (NYSE: WXS), a leading global provider of
value-based business payment processing and information management
solutions, in collaboration with IHS, the leading global source of
information and analytics, today released results of its Wright Express
Construction Fuel Consumption Index (FCI), which indicated an increase
of 3.5% in March versus its level the previous year.
The Wright Express 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. The
construction segment comprises approximately 20% of the Wright Express
portfolio of customers.
"The results of the March 2012 Fuel Consumption Index indicates
increased fueling activity in the construction sector, which typically
accompanies an improvement in U.S. construction activity," said Michael
Dubyak, chairman and chief executive officer of Wright Express. "It is
encouraging to see a positive uptick for March following the negative
year-over-year metrics witnessed for the previous three months."
Wright Express worked with IHS to capture and analyze transaction data
from its closed loop network of more than 180,000 fuel and vehicle
maintenance locations, including over 90 percent of the domestic retail
fuel locations and 45,000 vehicle maintenance locations. With this data,
the Wright Express 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 March 2012, the
Wright Express Construction FCI reported that fuel consumption by U.S.
construction companies increased by 3.5% versus March 2011 and increased
by 3.8% versus the previous month.
The Wright Express Construction FCI, which is available monthly in
advance of the U.S. Census Bureau figures on construction spending, is
available at www.wrightexpress.com/fci.
March 2012 Wright Express Construction Fuel Consumption Index (FCI)
According to the Wright Express Construction FCI, the strong growth in
March marks the largest month-over-month gain in fuel consumption for
the seasonally-adjusted index since the creation of the FCI. Other
recently released construction data has been less positive as the
unusually warm winter weather boost faded and the industry lost 7,000
jobs in March and 6,000 in February. Additionally, real spending on
infrastructure is likely to remain on a downward trend through next
year, given the budgetary problems confronting state and local
According to the IHS analysis, after three years of depressed
construction, the inventory of new housing is beginning to tighten. New
home sales declined by 1.6% in February, but inventory continues to
shrink, which is good news since builders will have to replenish stocks
by ramping up starts once demand rebounds. Housing starts were down in
February, but were still at their third-highest level since October
2008. Meanwhile, housing permits rose 5.1% in February to a 717,000
annual rate, which is the highest level since October 2008. The pickup
in permits in February is a good sign for future homebuilding activity.
2012 should be a better year for housing than 2011. Pent-up demand for
housing is building as young adults stay at home, and at some point will
spark a revival in housing activity.
The Wright Express Construction FCI for March 2012 is available at www.wrightexpress.com/fci.
About Wright Express
Wright Express (NYSE:WXS) is a leading provider of value-based, business
payment processing and information management solutions. The company's
fleet, corporate and prepaid payment solutions provide its more than
350,000 customers with unparalleled security and control across a wide
spectrum of business sectors. The company's operations include Wright
Express Financial Services, Pacific Pride, Wright Express Prepaid Cards
Australia and Wright Express Fuel Cards Australia. Wright Express and
its subsidiaries employ more than 900 associates in six countries. For
more information about Wright Express, please visit wrightexpress.com.
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Wright Express Corporation
Jessica Roy, 207-523-6763
© Business Wire 2012