Wednesday, September 22, 2010

Stat of the Day: Architect Index Improves Slightly

The American Institute of Architects Billings Index (ABI) improved slightly in August. It improved for the 3rd straight month..As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. The score was only 48.2 and still remains below the 50 mark that designates growth in billings. Project Inquiries were a strong 54.6 signaling continued interest in projects.

The Index still isn't robust but it has improved dramatically off the bottom. 

“Project cancelations, regardless of when they happen in the design phase, continue to be the main road block to recovery for the construction sector,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “Numerous projects have been put on hold indefinitely over the last several months with little hope that they will be resumed. Work that is being done is more likely smaller renovation projects, as opposed to new buildings.”

Key August ABI highlights:
    • Regional averages: Northeast (50.9), Midwest (49.2), West (45.8), South (45.3)
    • Sector index breakdown: commercial / industrial (50.6), ), multi-family residential (46.9), institutional (46.0), mixed practice (42.6)
    • Project inquiries index: 54.6 

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