Construction and Business Activity Showing Stability
The Architecture Billings Index (ABI) for March was virtually identical to February’s figure, according to the American Institute of Architects (AIA).
By CleanLink Editorial Staff
The Architecture Billings Index (ABI) for March was virtually identical to February’s figure, according to the American Institute of Architects (AIA).
The ABI rating, an economic indicator of construction activity, was 52.6 (any score above 50 indicates an increase in billings) for the month of March, versus the 52.5 mark in February.
With an approximate nine to twelve month lag time between architecture billings and construction spending, and significant inquiry levels for new projects this news continues a forecast that remains favorable for the nonresidential construction market throughout 2007, AIA says
“After spiking from November through January, the ABI has returned to more modest growth levels seen earlier this past fall,” says Kermit Baker, chief economist, AIA. “Firms are reporting more stable business activity and in some cases are being forced to increase their project backlogs of commercial and institutional projects because of heavy demand for design services over the last 18 months.”
Key March ABI highlights include:
• Regional averages: South (54.8), Midwest (52.6), West (51.9), Northeast (50.2)
• Sector index breakdown: institutional (54.8) , mixed practice (52.7), residential (52.0), commercial / industrial (51.7)
• Inquiries index: 61.8
“Due to the strong business conditions over the last year, compensation levels for architecture positions are expected to increase about four percent in 2007, with a significant portion of firms expecting increases in paid overtime as well as in bonuses and profit sharing,” says Baker.
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