Architectural Billings Rebound in Some Regions and Sectors
The Architecture Billings Index (ABI) compiled by the American Institute of Architects hit its highest point in 8 months in May. The overall ABI of 52.6 may indicate that the spring thaw in demand for design services finally arrived. Two out of four geographic regions saw growth, as did two of three business sectors.
The South region (58.1) continues a sustained period of growth, recording its highest growth rate in a 23-month period of increased demand for design. The Midwest region (51.3) also saw modest growth after a long winter decline. The Northeast region (47.6) reported a smaller rate of decline but continues to struggle, as does the West region (46.9).
Residential construction (58.2) saw a surge in demand in May, and the commercial and industrial sector (53.6) also reported growth. The institutional sector (47.3), however, reported a seventh consecutive month of decline in billings.
As a leading economic indicator of construction activity, the ABI reflects the approximate 9-12-month lag time between architecture billings and construction spending.
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Dan
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Email: dan@zeiler.com
Source: www.irmi.com