Architecture Billings Index Remains Positive, But Construction Sector Lags

The Architecture Billings Index (ABI) remained positive again in July with a 52.7 reading, improving on the June score of 51.6.  As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. This score reflects an increase in demand for design services (any score above 50 indicates an increase in billings). However, the construction sector was expected to be one of the key engines of economic growth this year, but results to date have been disappointing. Of the more than 1.3 million payroll positions added nationally so far in 2013, the construction industry has contributed only 82,000, or just over 6 percent. Continue reading here.