Out Fox The $treet

The Architecture Billings Index (ABI) has been one of the weakest indexes to recover from the recession. The index measures the work of architects on non-residential construction projects and usually signals work in the next 9 to 12 months. 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.  From Reuters : "The strong upturn in design activity in the commercial and industrial sector certainly suggests that this upturn can possibly be sustained," said Kermit Ba...

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 build...

Ok this stat was actually from last week, but I'm just now reading it. The AIA (American Institute of Architects) reported last week that the Architecture Billings Index creep up to 43.1 in September still showing an industry in decline. Like other industrial sectors, the index is clearly off the lows, but this one is definitely struggling more to regain growth. The encouraging part of the index is that project inquiries grew to 59.1 showing signs that future demand will pick up. Its the highest level since September 2007 which is when the financial crisis really began. It'll be interesting to see how this index progresses in the next few months. The stimulus bill clearly didn't meet the needs of this country if ABI is still negative this many months later. If we could only learn from the Communist in China. Washington, D.C. – October 21, 2009 – As the nonresidential construction industry continues to struggle, the Architecture Billings Index (ABI) showed a nominal improve...