–June New Projects Index Rises To 54.4 From 54.0 In June
–AIA: June Billings Index Suggests Demand Contraction Continued
WASHINGTON (MNI) – The American Institute of Architects’
Architecture Billings Index rose only slightly to a reading of 45.9 in
June, a third consecutive sub-50 reading following five consecutive
months of positive growth, 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 June index reflects that a large number of
firms are “still coping with a sluggish and erratic marketplace,”
according to the AIA.
Also in June, the new projects inquiry index rose only slightly to
54.4 from 54.0 in May.
The AIA said that lag between the ABI and construction spending is
about nine months.
“The downturn in design activity that began in April and
accelerated in May has continued into June, likely extending the weak
market conditions we’ve seen in nonresidential building activity,
said the AIA’s Chief Economist, Kermit Baker.
The ABI is now below 50 for all sectors, with the commercial and
industrial sector down to 46.9 to join sub-50 readings for the
multi-family residential (49.0), institutional (46.0), and mixed
practice (45.9) sectors.
The billings index was now below 50 in all four regions. It was
46.4 in the Northeast, 44.3 in West, 48.0 in Midwest, and 47.6 in the
South.
National housing starts and permits data for June will be release
Wednesday morning at 8:30 a.m. ET.
The data on residential and nonresidential construction spending
for June are scheduled be released on August 1 at 10:00 a.m. ET.
** MNI Washington Bureau 202-371-2121 **
[TOPICS: M$U$$$,MAUDS$]
