–Jan New Projects Index Slides To 61.2 From 61.5 In December
WASHINGTON (MNI) – The American Institute of Architects’
Architecture Billings Index fell slightly to a reading of 50.9 in
January from a revised reading of 51.0 in December, but still indicates
a third consecutive month 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 January index reflects modest growth in
demand for design services.
Also in January, the new projects inquiry index fell slightly to
61.2 from 61.5 in December.
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 January
reading was “encouraging” and different from other upturns in late 2010
and early 2011 because the gains were more widespread in the current
trend.
However, there is still uncertainty and some firms continue to
struggle, Baker said. As a result, the AIA expects gains in sector to
“be modest in the coming months.”
The billings index was above 50 in the three of the four regions of
the country in January. The Midwest (53.7), South (51.6) and Northeast
(50.7) regions all remained above 50, while the reading for the West
(45.6) remained below 50.
The ABI remained above 50 in the multi-family residential (52.6),
commercial and industrial (52.2) and institutional (51.1) sectors. It
was remained below 50 in the mixed practice (46.1) sector.
National housing starts and permits data for January were released
on February 16 and indicated continued improvement after seasonal
adjustment.
The data on residential and nonresidential construction spending
for January are scheduled be released on March 1 at 10:00 a.m. ET.
** Market News International Washington Bureau 202-371-2121 **
[TOPICS: M$U$$$,MAUDS$]
