–October New Projects Index Rises To 59.4 From 57.3 In October
WASHINGTON (MNI) – The American Institute of Architects’
Architecture Billings Index rose to a reading of 52.8 in October from
51.6 in September, 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.
Also in October, the new projects inquiry index rose to 59.4 from
57.3 in September, suggesting a stronger rate of inquiries.
The AIA said that lag between the ABI and construction spending is
about nine months.
“With three straight monthly gains – and the past two being quite
strong – it’s beginning to look like demand for design services has
turned the corner,” said the AIA’s Chief Economist, Kermit Baker, adding
that while a number of challenges, like the election, are in the past,
there is still uncertainty going forward.
The ABI remained above 50 for the multi-residential sector, rising
to a reading of 59.6 from 57.3 in September. In addition, the reading
for the institutional sector ticked up to 51.4 from 51.0.
The index for the mixed use sector rose to 52.4 from 47.8, the fire
reading above 50 since July 2011.
However, the reading for commercial and industrial design fell to
48.0 from 48.4.
The regional billings index readings were all above 50. The index
rose above 50 in the Northeast and Midwest, stayed above 50 in the
South, and fell slightly in the West.
National housing starts and permits data for October were released
earlier Tuesday and indicated another sharp increase in starts and
decline for permits.
The data on residential and nonresidential construction spending
for October are scheduled be released on December 3 at 10:00 a.m. ET.
** MNI Washington Bureau 202-371-2121 **
[TOPICS: M$U$$$,MAUDS$]
