AIA's Construction Index Ends 2006 with Highest Mark of the Year
For the second consecutive month, the Architecture Billings Index (ABI) recorded an increase in activity, according to the American Institute of Architects (AIA).
For the second consecutive month, the Architecture Billings Index (ABI) recorded an increase in activity, according to the American Institute of Architects (AIA).
The AIA's index is derived from a monthly “Work-on-the-Boards” survey and produced by the AIA Economics & Market Research Group.
Following a six point jump in November, the ABI increased even more in December and finished 2006 with its highest score. The commercial / industrial sector recorded its highest reading in the history of the survey that originated in 1995, while scores in the institutional market also showed improvement.
The AIA reported the December ABI rating was 59.5 up from 57.4 in November (any score above 50 indicates an increase in billings). The findings should translate into a high level of activity throughout 2007, according to AIA.
“Despite a sluggish economy, there is no sign of a slowdown in nonresidential construction activity in the foreseeable future,” says AIA Chief Economist Kermit Baker. “This is very positive news for the construction industry and those markets affected by it because 2006 ended on a strong rebound, after trending down for most of the first 10 months.”
“These very solid billings are further confirmation that the construction market has retained momentum going into 2007 and that growth should be solid over the next several quarters," says SunTrust Robinson Humphrey Business Services Analyst Mark Hughes.
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