AIA’s Billing Index Up in March. On the heels of a more than two-point gain in February, the Architecture Billings Index (ABI) was up again in March. As a leading economic indicator of construction activity published each month by the American Institute of Architects (AIA), Washington, D.C., the ABI reflects the approximate nine-to-twelve month lag time between architecture billings and construction spending. The AIA reported the March ABI rating was 46.1 points, up from a reading of 44.8 points the previous month.
“This is certainly an encouraging sign that we could be moving closer to a recovery phase, even though we continue to hear about mixed conditions across the country,” said AIA’s Chief Economist Kermit Baker. “Firms are still reporting an unusual amount of variation in the level of demand for design services, from improving to poor to virtually non-existent. This increasing volatility is often a sign that overall business conditions may begin to change in the coming months.”
PMI Index gains 3.1 points in March. Purchasing managers at industrials remain optimistic, according to the latest Purchasing Managers Index published by the Institute for Supply Management (ISM), Tempe, Ariz. “The manufacturing sector grew for the eighth consecutive month during March,” said Norbert Ore, chair of the ISM’s Manufacturing Business Survey Committee. “The rate of growth as indicated by the PMI is the fastest since July 2004. Both new orders and production rose above 60 percent this month, closing the first quarter with significant momentum going forward.”
Leading Economic Index registers biggest gain in three months. The Conference Board Leading Economic Index (LEI) for the U.S. increased 1.4 percent in March, following a 0.4 percent gain in February and a 0.6 percent rise in January. Says Ataman Ozyildirim, an economist at The Conference Board, “The U.S. LEI has risen steadily for a year, and its six-month growth rate has remained fairly stable in recent months — led by improvements in financial and labor market indicators. Payroll employment made its first substantial contribution to the coincident economic index, suggesting a recovery that is beginning to gain traction.”