WASHINGTON, DC-The Architecture Billings Index, a leading economic indicator for the construction industry, rose three points in October, after a sharp decline in September. The index, though, has toyed with the industry’s hopes before with such back and forth movements, the American Institute of Architects’ chief economist Kermit Baker tells GlobeSt.com. “We are just going to have to wait and see if this rise is a sustainable one or another blip,” Baker says.
Other economic data, such as the unemployment rate, suggests a moderate improvement in the economy, he notes. “I would say we are in a better position from a month ago. Hopefully the ABI will reflect that in the coming months.”
The October ABI score was 49.4, following a score of 46.9 in September. The new projects inquiry index was 57.3, up from a reading of 54.3 the previous month. Any score below 50 reflects a decrease in demand for design services.
Another indicator released at the same time as the ABI, however, suggests that construction activity will remain flat at least in the near future. The Associated Builders and Contractors’ Construction Backlog Indicator for the third quarter remained unchanged from the previous quarter--although it was up 16.3% from a year ago.
CBI is a forward-looking economic indicator that measures the amount of construction work under contract to be completed in the future.
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