Economy
Leading nonres indicator falls to more than three-year low
Written by Laura Miller
April 29, 2024
An important economic indicator for the nonresidential construction industry declined in March to its lowest point in more than three years.
The American Institute of Architects (AIA) reported that the Architectural Billings Index (ABI) registered 43.6 in March, down from 49.5 in February and 50.4 in March 2023. A lower ABI was last seen in December 2020 when the index hit 42.3.
The ABI, a diffusion index from AIA and Deltek, typically leads activity in the nonresidential construction industry by 9-12 months. Any score above 50 indicates an increase in architectural billings, while a score below 50 indicates a decrease.
With the index last rising above 50 in January 2023, March “marked the 14th consecutive month of declining billings at firms as inflation, supply-chain issues, and other economic challenges continue to affect business,” AIA said.
All regions of the US reported declining billings, but firms in the Midwest and South reported the softest business conditions.
AIA said billings declined at a faster clip at firms with a commercial/industrial specialization, while they were essentially flat at firms specializing in institutional design. The index reading for billings at mixed specialization firms rose for a fourth month.
The association, which represents architects and design professionals, reported that while there is interest in starting new projects, clients are hesitant to sign contracts. Still, most firms have an average backlog of 6.6 months, “so even with the ongoing soft patch, they still have work in the pipeline,” AIA added.
Laura Miller
Read more from Laura MillerLatest in Economy
May manufacturing activity sluggish in New York state
New York state continues to see deteriorating manufacturing business conditions through May, according to the latest Empire State Manufacturing Survey
US construction spending levels off in March
Construction spending in the US in March was basically steady from the previous month but showed notable year-on-year (y/y) growth.
ISM: Manufacturing sector contracted in April
The Index had briefly showed expansion in March, but has indicated a contracting manufacturing sector for 17 of the last 18 months.
Chicago Business Barometer falls to 16-month low
The Chicago Business Barometer slipped further in April, now at the lowest measure recorded since November 2022.