Aug 20 (Reuters) - The Architecture Billings Index,
considered a leading indicator of U.S. non-residential construction, rose in
July to a seven-year high, the American Institute of Architects said on
Wednesday.
The ABI rose to 55.8 in July, from 53.5 in June, reflecting
an increase in design activity.
"The last three months have shown steadily increasing
demand for design services, and the Architecture Billings Index (ABI) is now at
its highest level since 2007," the institute said in a statement.
The index, which is based on a survey of U.S. architects,
reflects the roughly nine to 12 months between architecture billings and
construction spending. A reading above 50 indicates expanding demand for
architects' services.
Industrial companies and their investors track the monthly
indexes as an indicator of future demand for machinery and components used to
erect buildings.
The improving index represents the latest evidence of a
stronger recovery of the U.S. non-residential construction market. Several U.S.
manufacturers whose fortunes are linked to non-residential construction
spending cited rising orders and increasing optimism during their most recent
quarterly earnings reports.
"Business conditions for the design and construction
marketplace, and those industries associated with it, appear to be well
positioned for continued growth in the coming months," Kermit Baker, chief
economist with the AIA, said in the statement.
A separate measure of new projects ticked down to 66 from
66.4 in June. The architects' group characterized the June level as "very
strong." (Reporting by Lewis Krauskopf; Editing by Leslie Adler)
Source: Reuters
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