WASHINGTON, DC-Like a frustrated dieter watching the scale go down, back up and then down again, so it goes with the AIA Architecture Billings Index, a leading economic indicator for the design and construction industry. After a disappointing slump in October, the ABI has risen more than three points for November to reach its highest mark since December 2007--a positive 52 (any score above 50 indicates an increase in billings).
The new projects inquiry index was 61.4, down slightly from a mark of 61.7 in October. Other highlights from the report include positive regional averages for the Northeast (51.1), Midwest (50.9) and the South (50.5), however, the West posted a score of 48.7. As for sectors, multifamily residential came in at 54.3, commercial/industrial was 49.8, institutional was 49.3 and mixed-practice posted a score of 45.8. The project inquiries index was 61.4.
AIA economist Kermit Baker is not calling a turnaround for the design industry, though. The index already raised--and then 30 days later dashed--the industry’s hopes when it moved into positive territory in September and then dropped again the following month. “This was a very encouraging jump for November but it is hard to tell if it will be sustained,” he told GlobeSt.com. “This is a weak recovery for both the economy and the construction industry. Until we see consist scores in the mid 50s for the index the recovery will be modest at best.”
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