WASHINGTON (MNI) – The American Institute of Architects’
Architecture Billings Index, fell to a reading of 46.9 in September
after rising to 51.4 in August, 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 September index reflects an outright decline
in demand for design services.
The AIA said that lag between the ABI and construction spending is
about nine months.
Also in September, the new projects inquiry index fell to 54.3 from
56.9 in August.
The AIA’s Chief Economist, Kermit Baker, suggested that the
increase in August index may have been “an aberration.” He noted that
the economy at present appears to be too weak to maintain growth in
design activity.
In the regional breakdown, the billings index was above 50 in the
Midwest (51.0) and Northeast (50.8), but was below 50 in the South
(47.3) and West (46.7) regions.
The ABI was above 50 in the commercial and industrial (52.4) and
mixed practice (50.0) sectors, but was below 50 in the institutional
(48.0) and multi-family residential sectors.
National housing starts and permits data for September will be
released at 8:30 a.m. ET Wednesday and will contain statistics for
multi-family properties. Data on nonresidential construction for
September will be released on November 1 at 10:00 a.m. ET.
** Market News International Washington Bureau 202-371-2121 **
[TOPICS: M$U$$$,MAUDS$]
