Architecture index shows nonresidential construction growth

The ABI rating in October was 51.1; any score more than 50 indicates increased billings. Inquiries about new projects was 62.7.

The index indicates that future growth in construction activity will come primarily from the commercial, industrial and institutional markets. The index shows a lag time of nine to 12 months between architecture billing and construction spending.

“These figures are consistent with continued growth in key nonresidential construction sectors,” said AIA Chief Economist Kermit Baker, in a news release.

Baker noted that regional readings were unusually volatile for the index in October.

“Firms in the Midwest had been reporting weakening conditions in recent months; however, the October score rebounded to its strongest pace of growth since the first quarter of the year,” he said. “Firms in the South and West reported continued growth, but the pace of growth was down from recent months. Finally, firms in the Northeast reported only their second decline in billings since late 2003.”

The Architecture Billings Index is derived from a monthly Work-on-the-Boards survey and produced by the AIA Economics & Market Research Group. Based on a comparison of data compiled since the survey’s inception in 1995 with figures from the Department of Commerce, the findings provide a glimpse into the future of nonresidential construction activity. [[In-content Ad]]