Economy
Architecture Billings Slip in July
Written by Sandy Williams
August 22, 2018
Architecture billings growth slowed in July, according to the American Institute of Architects. The AIA Architecture Billings Index slipped to 50.7 from 51.3 in June. A score over 50 indicates billing growth, but on a regional basis only the South registered growing demand with an index reading of 55.2. Regional averages in the remainder of the country were West at 49.6, Midwest 49.3 and Northeast 48.0. Architecture billings are considered a leading indicator of construction activity and demand for steel and other construction materials.
“Billings at architecture firms in the South remained robust in July, offsetting declining billings in other regions of the country,” said AIA Chief Economist Kermit Baker. “Despite the dip in the overall ABI number in July, firms are still reporting a healthy increase in new projects.”
The design contracts index posted at 53.8 and the project inquiries index at 50.5.
Planning for multi-family residential led the sector index breakdown with a score of 54.6, followed by institutional at 51.1, commercial/industrial at 50.1 and mixed practice contracting to 48.2.
Below is a graph showing the history of the AIA Architecture Billings Index and Inquiries Index. You will need to view the graph on our website to use its interactive features; you can do so by clicking here. If you need assistance logging into or navigating the website, please contact Brett at 706-216-2140 or Brett@SteelMarketUpdate.com.
About the AIA Architecture Billings Index
The Architecture Billings Index (ABI), produced by the American Institute of Architects, reflects the approximate nine- to 12-month lead time between architecture billings and construction spending. The survey panel asks participants whether their billings increased, decreased or stayed the same in the month that just ended. The regional and sector categories are calculated as a three-month moving average, whereas the national index, design contracts and inquiries are monthly numbers. The monthly ABI index scores are centered on the neutral mark of 50, with scores above 50 indicating growth in billings and scores below 50 indicating a decline.
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
Housing starts ticked up in February
Single-family starts last month hit a rate of 1.10 million, a month-over-month increase of 11.4%, census data shows.
Architecture billings continued to slide in February
The ABI is a leading indicator for near-term nonresidential construction activity and projects business conditions ~9-12 months down the road (the typical lead time between architecture billings and construction spending).
New York state manufacturing activity tumbles in March
After a modest recovery in February, business activity in New York state’s manufacturing sector declined sharply in March, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York.
Steel, manufacturing, and union groups divided on S232 tariffs
Domestic steel trade associations, manufacturing groups, and the United Steelworkers (USW) union had mixed reactions to the implementation of new Section 232 tariffs without exclusions on Wednesday. Trade groups representing steel mills broadly supported President Trump’s actions, while the USW and some groups representing manufacturers were more critical. AISI Kevin Dempsey, president and CEO of […]
CRU: Will US tariff policy be transactional or transformational?
The Trump 1.0 tariffs appeared to have little positive effect on the US manufacturing, partly because they hurt export competitiveness.