MNI: US Architecture Billings Index Falls To 52.9 In December

     WASHINGTON (MNI) - The American Institute of Architects' Architecture

Billings Index fell to a reading of 52.9 in December from 55.0 in November,

continuing to suggest positive growth, 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 rose to 61.9 in December from 61.1 in

November. 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 slightly to 52.7 from 53.2 in

November. 

     "Overall, 2017 turned out to be a strong year for architecture firms. All

but two months saw ABI scores in positive territory," said AIA Chief Economist

Kermit Baker. "Additionally, the overall strength of the fourth quarter lays a

good foundation for healthy growth in construction activity in 2018."

     All four sectors had readings that remained in growth territory. The index

for the multi-family residential sector rose to 55.4, while the commercial and

industrial sector's reading rose to 54.8. The institutional sector's reading

fell to 51.2, while the mixed use sector's reading fell to 50.4.

     The billings index was above 50 in the Midwest, South, and West, but dipped

to 49.4 in the Northeast.

     Housing starts and permits data for December were released last week and a

pullback in the pace of home building, while data on construction spending for

nonresidential structures in December will be released on February 1 at 10:00

a.m. ET. 

--MNI Washington Bureau; tel: +1 202-371-2121; email: kevin.kastner@marketnews.com

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