Leading Indicators of the Electrical Economy

May 22, 2015
Building permits see nice bump up in April. Privately-owned housing units authorized by building permits in April were at a seasonally adjusted annual rate of 1,143,000, according to U.S. Census data.

Building permits see nice bump up in April. Privately-owned housing units authorized by building permits in April were at a seasonally adjusted annual rate of 1,143,000, according to U.S. Census data. This is 10.1% above the revised March rate of 1,038,000 and 6.4% above the April 2014 estimate of 1,074,000. Single-family authorizations in April were at a rate of 666,000, 3.7% above the revised March figure of 642,000.

Architectural billings sag again in April. The Architecture Billings Index (ABI) published monthly by the American Institute of Architects dropped in April for the second month this year. AIA reported the April ABI score was 48.8, down sharply from a mark of 51.7 in March. This score reflects a decrease in design services (any score above 50 indicates an increase in billings). As a leading economic indicator of construction activity, the ABI reflects the approximate nine- to twelve-month lead time between architecture billings and construction spending.

“The fundamentals in the design and construction industry remain very healthy,” said AIA Chief Economist Kermit Baker. “The fact that both inquiries for new projects and new design contracts continued to accelerate at a healthy pace in April points to strong underlying demand for design activity. April would typically be a month where these projects would be in full swing, but a severe winter in many parts of the Northeast and Midwest has apparently delayed progress on projects.”

April Purchasing Managers Index remains in growth mode.  The April PMI published  monthly in the Institute for Supply Management’s latest Manufacturing Report on Business registered 51.5%, the same reading as March. Any reading over 50 indicates the industrial purchasing environment is in growth mode.

Oil rig count continued to plummet in April. The average U.S. rig count for April 2015 was 976, down 134 from the 1,110 counted in March 2015, and down 859 from the 1,835 counted in April 2014, according to Baker Hughes. The worldwide rig count for April 2015 was 2,268, down 289 from the 2,557 counted in March 2015, and down 1,120 from the 3,388 counted in April 2014.

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