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| Modest growth seen in Architecture Billings Index for September The American Institute of Architects (AIA) reported the September Architecture Billings Index (ABI) rating was 51.4 (any score above 50 indicates an increase in billings), and inquiries for new projects was 67.7, its highest mark since December 1995 (68.7). The Architecture Billings Index (ABI), a leading economic indicator of nonresidential construction activity, showed more modest growth in September following a surge in the August figures. Demand for commercial / industrial projects and institutional projects continue to set the pace for the sustained positive conditions. Based on the approximate nine to twelve month lag time between architecture billings and construction spending, the recent growth in billings points to a healthy future in the nonresidential construction market throughout 2007. Goldman Sachs steel analyst, Sal Tharani said, "We expect non-residential construction activity to remain robust as indicated by various leading indicators like the Architecture Billing Index and backlogs at the construction steel (long products) fabricators. Unlike the nineties when the activity was primarily led by office construction, the current cycle is driven by schools, warehouses, big box retailers, hotels, and general industrial and manufacturing complexes. We believe that these drivers are more diverse and stable, and should support the non-residential construction sector over a longer period." write your comments about the article :: © 2006 Construction News :: home page |