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MNI: US Architecture Billings Index Falls To 49.1 In September

     WASHINGTON (MNI) - The American Institute of Architects' Architecture
Billings Index fell to a reading of 49.1 in September from 53.7 in August, but
the the dip should only be seen as a brief pause, the AIA reported Wednesday.
     The ABI is a diffusion index, with any reading below 50 representing a
decline in billings and reading above 50 representing growth in billings.
     The AIA said that lag between the ABI and construction spending is about
nine to twelve months.                                                     
     The new projects inquiry index fell to 59.0 in September from 62.5 in
August. At the same time, the AIA's measure of design construction, which is
meant to provide an earlier signal of the direction of billings by bridging the
gap between inquiries and actual billings, fell to 52.9 from 54.2 in August. 
     "We've seen unexpectedly strong numbers in design activity for most of
2017, so the pause in September should be viewed in that context," said AIA
Chief Economist Kermit Baker. "Project inquiries and new design contracts remain
healthy, and the continued strength in most sectors and regions indicates
stability industry-wide."
     All four sectors had readings that remained above the 50.0 breakeven point.
The index for the multi-family residential sector fell to 51.0, while the mixed
use sector's reading declined slightly to 52.2 and the commercial and industrial
sector's reading fell to 54.0. The institutional sector's reading rose modestly
to 51.0 from 50.1. 
     The billings index was also above 50 in every region of the country, except
the West, where the index fell to 48.8 from 51.3 in the previous month. 
     Housing starts and permits data for September will be released Wednesday at
8:30 a.m. ET, while data on construction spending for nonresidential structures
in September will be released on November 1 at 10:00 a.m. ET. 
--MNI Washington Bureau; tel: +1 202-371-2121; email: kevin.kastner@marketnews.com
[TOPICS: MAUDR$,MAUDS$,M$U$$$]

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