Dive summary:

• Gilbane Building's latest report on economics in the construction industry says the residential recovery is the real deal, with housing starts up 30% from last year and 40% from the bottom of the crashed market.
• The report has restrained good news for nonresidential also, saying that increases in builders charges this year are above the increased costs of labor and materials.
• In 2013, the report predicts, overall construction spending should go up 5%, and the residential component should rise 11%, although the Architectural Billings Index has a gloomy outlook for February through July in nonresidential.

From the report:

As it did in 2012, even a moderate growth in activity will allow contractors to pass along more material
costs and increase margins. ...