The September Architecture Billings Index was up 2.2 points to 50.4, marking the fourth consecutive month of increases, the American Institute of Architects said. Finally suggesting a recovery in the very weak construction area. Also encouraging was that the project inquiries index hit 62.3, the highest level since 2007.
Apparently the US finally sees a recovery in construction activity early next year. This will help companies like Terex (TEX), Manitowoc (MTW), and Ingersoll-Rand (IR) which haven't benefited as much from the gains in industrial spending.
- "The strong upturn in design activity in the commercial and industrial sector certainly suggests that this upturn can possibly be sustained," said Kermit Baker, AIA's chief economist. "But we will need to see consistent improvement over the next few months in order to feel comfortable about the state of the design and construction industry."
The AIA'S separate, less predictive, project inquiries index rose to 62.3, from 54.6 in August, reaching its best level since July 2007. Project inquiries typically produce a higher reading than actual billings because multiple architecture firms bid on the same work.
Disclosure: Long TEX