Architectural Billings Index

The July 2014 Architectural Billings Index results were published a few weeks ago.  I like to keep an eye on this index, which is a leading indicator for construction activity (about 9 – 12 months ahead of related construction activity).  For more background on this index, click here…

On a national basis, the index score was 55.8, a sharp increase from previous months and a strong rebound from earlier in the year when harsh winter weather slowed things down considerably.  In a nutshell, any number 50.0+ indicates increased architectural billings and foretells increased construction activity.  The regional data shows activity in a tight positive range across the U.S. as follows: West (53.5) South (55.1) Northeast (55.5) and the Midwest (54.1).

These regional numbers can be compared against the table below which shows the March numbers for 2014 and 2013:

	West	South	Northeast	Midwest	National
2014	50.7	52.8	46.8	46.6	48.8
2013	51.9	53.6	54.6	53.9	51.9

Earlier this year I wrote the following after the March 2014 numbers were posted: “The numbers, year over year at March, dropped for all regions but far more sharply in the colder weather climates.  If weather was a factor, we should see these numbers rebound in the Spring/Summer months.  The numbers suggest, in our region here in the West, that things are stable and growth is moderate.  The West region numbers in 2012 and 2011 were 46.6 and 47.7 respectively, so things have certainly improved these last few years.  Given this is a leading indicator, expect more of the same over the next year in terms of construction activity, that is modest growth.”

These recent ABI numbers are certainly encouraging.  Many of us who work in this industry can see the improvement in our marketplace.  These numbers bode well for the near and intermediate term of the building industry in the U.S. and out here in the West.