WASHINGTON (MNI) – The American Institute of Architects’
Architecture Billings Index rose to a reading of 52.0 in November from
49.4 in October, the AIA reported Wednesday.
The ABI is a diffusion index, with any reading below 50
representing a decline in billings and reading above 50 representing
growth in billings. So, the November index reflects modest growth in
demand for design services.
Also in November, the new projects inquiry index rose to 65.0 from
57.3 in October.
The AIA said that lag between the ABI and construction spending is
about nine months.
The AIA’s Chief Economist, Kermit Baker, said that the increase in
the November index was “a heartening development” for the design
industry that hopefully signals recovery, but noted that more data is
needed to conclude that the recession for construction has ended
In the regional breakdown, the billings index was above 50 in the
South (54.4) and Midwest (50.9) regions, but was below 50 in the
Northeast (49.1) and West (45.6) regions.
The ABI was above 50 in the multi-family residential (55.8) and
commercial and industrial (53.9) sectors, but was below 50 in the
institutional (48.9) and mixed practice (41.6) sectors.
National housing starts and permits data for November were released
Tuesday and showed continued increases for multi-family permits and
starts, which account for larger shares of total starts and permits than
a year ago.
Data on nonresidential construction for November will be released
on January 3 at 10:00 a.m. ET.
** Market News International Washington Bureau 202-371-2121 **
[TOPICS: M$U$$$,MAUDS$]
