The IHS PEG Engineering and Construction Cost Index (ECCI) is a leading indicator for wage and material inflation for the Engineering, Procurement and Construction sector.

Overview

The IHS PEG Engineering and Construction Cost Index

The IHS PEG Engineering and Construction Cost Index (ECCI) is based upon data independently obtained and compiled by IHS from procurement executives representing leading Engineering, Procurement, and Construction firms. See full list of member companies.

The ECCI tracks industry specific trends and variations, identifying market turning points for key projects, and is intended to act as a leading indicator for wage and material inflation specific to this construction and engineering industry.

IHS EPG ECCI

Methodology

Surveys are sent out to members of the Procurement Executive Group (PEG) on the first Monday of each month and are open for a two week window. Results are released the last Friday of each month. See full list of member companies.

Each survey response is weighted equally for every USD 2 billion in spending in North America. Respondents are asked whether prices (either actual paid transactions or company-informed transactions) this month for individual materials, equipment, and regional subcontractor rates, were higher, lower or the same as the prior month. The breakdown of subcategories can be found in Chart 1.

Respondents are then asked for their six month pricing expectations among these same subcategories. The results are compiled into diffusion indexes, whereby a reading greater than 50 represents upward pricing strength and a reading below 50 represents downward pricing strength. Individual responses are considered raw data, are not revised and are not seasonally adjusted. The headline index is formed by creating a weighted composite between materials/equipment (70%) and subcontractor rates (30%).

Chart 1

About Us

The IHS PEG Engineering and Construction Cost Index (ECCI) is a diffusion index based on data independently obtained and compiled by IHS from procurement executives from leading engineering, procurement, and construction firms. The headline index tracks industry specific trends and variations, identifying market turning points for key projects, and is intended to act as a leading indicator for wage and material inflation specific to this industry. Each survey response is weighted equally for every $2 billion in spending in North America. Respondents are asked whether prices (either actual paid transactions or company-informed transactions) this month for individual materials, equipment, and regional subcontractor rates, were higher, lower or the same as the prior month. Respondents are then asked for their 6 month pricing expectations among these same subcategories. The results are compiled into diffusion indexes, whereby a reading greater than 50 represents upward pricing strength and a reading below 50 represents downward pricing strength.

About IHS (www.ihs.com)
IHS (NYSE: IHS) is a global information company with world-class experts in the pivotal areas shaping today’s business landscape: energy, economics, geopolitical risk, sustainability and supply chain management. We employ more than 8,000 people in more than 31 countries around the world. Businesses and governments around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005.

About PEG (www.peg-eci.org)
PEG logoThe Procurement Executives Group (PEG) provides a forum to identify and address procurement related issues which will improve the effectiveness of the engineering and construction industry. Established in 1994, the Procurement Executives Group has been recognized as an industry authority on procurement, materials management, and subcontracting topics. PEG is actively involved in supporting research efforts related to these topics.

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