WASHINGTON, DC-Leading economic indicator watchers had high hopes based on the Architecture Billings Index’s promise in the last few months of 2010. But it seems their hopes could be dashed. During the first two months of 2011, the ABI has just barely been eking out incremental growth--a disappointment as this indicator of construction activity reflects the nine- to 12-month lag time between architecture billings and construction spending.
The American Institute of Architects reported that the February ABI score was 50.6, a modest uptick from a reading of 50 the previous month. The new projects inquiry index was 56.4, compared to a mark of 56.5 in December. “Overall demand for design services seems to be treading water over the last two months,” says AIA chief economist Kermit Baker. That said, he adds, “We still expect the road to recovery to move at a slow, but steady pace.”
According to the February ABI, the Midwest is posting the strongest growth with a score of 55.3. The Northeast is weakest, at 46.4. The commercial/industrial sector is the strongest, with a score of 55, followed by mixed practice at 51.3, multifamily residential (49.7) and institutional (48.9).
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