–Dec New Projects Index Slides To 64.0 From 65.0 In November
WASHINGTON (MNI) – The American Institute of Architects’
Architecture Billings Index held steady at a reading of 52.0 in
December, still indicating 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 December index reflects modest growth in
demand for design services.
Also in December, the new projects inquiry index fell to 64.0 from
65.0 in November.
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 unchanged
reading in December was “very good news for the design and construction
industry,” but cautioned that a similar pattern at the end of 2010 gave
way to sub-50 readings in 2011.
The billings index was above 50 in the three of the four regions of
the country in December. The South (54.2) and Midwest (53.1) regions
remained above 50, while the Northeast (52.6) rebounded above 50 after
dipping in November. The reading for the West (45.1) remained below 50.
The ABI remained above 50 in the multi-family residential (54.3)
and commercial and industrial (54.1) sectors, and rebounded above 50 for
the institutional (51.3) sector. It was remained below 50 in the mixed
practice (44.5) sector.
National housing starts and permits data for December will be
released Thursday, while the data on residential and nonresidential
construction spending for December will be released on February 1 at
10:00 a.m. ET.
** Market News International Washington Bureau 202-371-2121 **
[TOPICS: M$U$$$,MAUDS$]
