–March New Projects Index Declines To 56.6 From 63.4 In March
WASHINGTON (MNI) – The American Institute of Architects’
Architecture Billings Index fell slightly to a reading of 50.4 in March
after ticking up to 51.0 in February, marking a fifth 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 March index reflects modest growth in demand
for design services.
Also in March, the new projects inquiry index fell to 56.6 from
63.4 in February, which was the highest reading since July 2007.
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 AIA is
hearing “more about improving conditions in the marketplace,” but
cautioned that some firms are still struggling.
As a result, Baker said that “progress is likely to be measured in
inches rather than miles for the next few months.”
The billings index was above 50 in the three of the four regions of
the country in March. The Midwest (54.1), Northeast (53.9), and South
(50.1) regions all remained above 50, while the reading for the West
(46.6) remained below 50, but improved slightly.
The ABI remained above 50 in the commercial and industrial (56.0),
and multi-family residential (51.9) sectors, but fell below 50.0 in the
institutional (47.7) sector and remained below 50 in the mixed practice
(47.2) sector.
National housing starts and permits data for March were released on
April 17 and indicated continued year/year improvement, though the pace
of starts fell further in March after seasonal adjustment.
The data on residential and nonresidential construction spending
for March are scheduled be released on May 1 at 10:00 a.m. ET.
** MNI Washington Bureau 202-371-2121 **
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