–May New Projects Index Declines To 54.0 From 54.4 In May
–AIA: May Billings Index Suggests Sharp Decrease In Demand
WASHINGTON (MNI) – The American Institute of Architects’
Architecture Billings Index fell to a reading of 45.8 in May, a second
consecutive negative 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 May index reflects “a sharp decrease in
demand for design services,” according to the AIA.
Also in May, the new projects inquiry index fell to 54.0 from 54.4
in April.
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 this marks
the second year in a row where spring activity declined following a
stronger first quarter. He noted that only the commercial/industrial
sector is growing at the moment, and even that growth is relatively
slow.
The ABI remained barely above 50 in the commercial and industrial
sector at 50.7, but fell below 50 in the multi-family residential sector
to 48.9. The ABI fell even further below 50 in the institutional (45.6)
and mixed practices (41.5) sectors.
The billings index was now below 50 in all four regions. It was
48.6 in the Northeast, 47.6 in West, 46.8 in Midwest, and 46.1 in the
South.
National housing starts and permits data for May were released
Tuesday morning and indicated a sharp decline in multi-family starts,
but a rise in multi-family permits.
The data on residential and nonresidential construction spending
for May are scheduled be released on July 2 at 10:00 a.m. ET.
** MNI Washington Bureau 202-371-2121 **
[TOPICS: M$U$$$,MAUDS$]
