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

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