Economy
ABI Drops Back into Negative Territory
Written by Sandy Williams
May 1, 2014
April was a month of disappointing economic indicators. The Architecture Billings Index turned negative this month after climbing up from a reading of 48.6 in December. The March reading was just 48.8, down from 50.7 in February and 50.4 in January. The American Institute of Architects Architecture Billings Index, an indicator of future construction activity, reflects a nine to twelve month lead time between architectural billings and construction spending. Any score above 50 indicates an increase in billings.
“This protracted softening in demand for design services is a bit of a surprise given the overall strength of the market the last year and a half,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “Hopefully, some of this can be attributed to severe weather conditions over this past winter. We will have a better sense if there is a reason for more serious concern over the next couple of months.”
The new projects inquiry rose just over a point to 57.9 from a reading of 56.8 in February. AIA has added a new indicator that measures the trends in new design contracts and that index read 48.2 for the month.
Regionally, the 3-month moving average remained unchanged for the South at 52.8, the West gained 0.2 points to 50.7, the Northeast contracted further to 46.8 from 48.3, and the Midwest dropped 1 point to 46.6.
{amchart id=”64″ AIA ABI Index}
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
Metalformers expect steady conditions in coming months
Metalformers expect economic activity to stabilize over the next three months, according to the recently released July Business Conditions Report from the Precision Metalforming Association (PMA).
Architecture Billings Index rises from 4-year low in June
The Architecture Billings Index (ABI) ticked up in June following May’s four-year low, according to the American Institute of Architects (AIA) and Deltek. While the index improved this month, it continues to indicate weak business conditions among architecture firms.
Beige Book: Uncertainty to continue fueling slower economic growth
Growth in the US economy continues to be constrained. The Federal Reserve’s Beige Book report for July shows more areas reporting flat or declining economic activity than in its previous report at the end of May.
AISI, AISC, University of Massachusetts get ~$6.4M EPA grant
The American Iron and Steel Institute (AISI), American Institute of Steel Construction (AISC), and the University of Massachusetts at Amherst have received a grant to enhance emissions reporting for steel construction projects.
Manufacturing activity in New York state continues to soften
New York state saw a continued decline in manufacturing activity in July, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York.