Electrical Marketing’s Leading Indicators - Nov. 20, 2015

Nov. 20, 2015
Get a quick read on the pulse of the electrical market with these economic measurements.

Building permits increase again in October. Privately-owned housing units authorized by building permits in October were at a seasonally adjusted annual rate of 1,150,000, 4.1% above the revised September rate of 1,105,000 and 2.7% above the October 2014 estimate of 1,120,000. Single-family authorizations in October were at a rate of 711,000 2.45% above the revised September figure of 694,000. 

Architecture Billings Index stays solid in October. The American Institute of Architects (AIA), Washington, D.C., said its October Architecture Billings Index (ABI). was 53.1, down slightly from the mark of 53.7 in the previous month. The new projects inquiry index was 58.5, down from a reading of 61.0 the previous month. Any score above 50 indicates an increase in billings. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve-month lead time between architecture billings and construction spending.

“Allowing for the possibility of occasional and minor backsliding, we expect healthy business conditions for the design and construction industry to persist moving into next year,” said AIA Chief Economist Kermit Baker in a press release.
Leading Economic Index bounces back in October. “The U.S. LEI rose sharply in October, with the yield spread, stock prices, and building permits driving the increase,” said Ataman Ozyildirim, director of business cycles and growth research at The Conference Board. “Despite lackluster third-quarter growth, the economic outlook now appears to be improving. While the U.S. LEI’s six-month growth rate has moderated, the U.S. economy remains on track for continued expansion heading into 2016.”

Purchasing Managers Index still positive in October.  The October Purchasing Managers Index (PMI) registered 50.1%, a decrease of 0.1 percentage point from the September reading of 50.2%, according to Institute for Supply Management’s Manufacturing Report on Business. Any number over 50% points toward a growth environment.