–July New Projects Index Rises To 56.3 From 54.4 In July
–AIA: July Billings Index Suggests Slower Demand Contraction
WASHINGTON (MNI) – The American Institute of Architects’
Architecture Billings Index rose to a reading of 48.7 in July, a fourth
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. But, the July index suggests a slower rate of
decline, according to the AIA.
Also in July, the new projects inquiry index rose to 56.3 from 54.4
in June, suggesting a stronger rate of inquiries.
The AIA said that lag between the ABI and construction spending is
about nine months.
“Even though architecture firm billings nationally were down again
in July, the downturn moderated substantially,” said the AIA’s Chief
Economist, Kermit Baker, adding that the index is likely to return to
growth territory in the coming months as long as economic conditions
continue to improve.
The ABI climbed above 50 for the multi-residential sector, to a
reading of 51.4 from 49.0 in June. The other sectors also posted index
gains from June, but remained below 50. Those sectors were the mixed
practice (49.1), commercial and industrial (48.4), and institutional
sectors (46.6).
The billings index rebounded in the South region in July to a
reading of 52.7 from 47.6 in June. The remain sectors remained below 50,
with a reading of 46.7 in Midwest, 45.3 in the West, and 44.3 in
Northeast.
National housing starts and permits data for July were released on
August 16 and showed a slightly reversal in starts, but a sharp rebound
for permits and other housing data in the report.
The data on residential and nonresidential construction spending
for July are scheduled be released on September 4 at 10:00 a.m. ET.
** MNI Washington Bureau 202-371-2121 **
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