Building permits look better than housing starts in February. Privately-owned housing units authorized by building permits in February were at a seasonally adjusted annual rate of 1,092,00, 3% above the revised January rate of 1,060,000 and 7.7% above the February 2014 estimate of 1,014,000. Single-family authorizations in February were at a rate of 620,000, 6.2% below the revised January figure of 661,000. Multi-family permits were at a rate of 445,000 in February.
Purchasing Managers Index remains in growth territory. Economic activity in the manufacturing sector expanded in February for the 26th consecutive month, and the overall economy grew for the 69th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business published by the Institute for Supply Management, Tempe, Ariz. The February PMI registered 52.9%, a decrease of 0.6 percentage point from January’s reading of 53.5% percent. Any mark over 50% indicates an expanding economy.
February ABI sounds a positive note. After its first negative score in ten months, the Architecture Billings Index (ABI) showed a nominal increase in design activity in February, and has been positive ten out of the past twelve months. 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 American Institute of Architects (AIA), Washington, D.C., reported the February ABI score was 50.4, up slightly from a mark of 49.9 in January. This score reflects a minor increase in design services (any score above 50 indicates an increase in billings). “The health of the institutional market has been the key factor for positive business conditions for the design and construction industry in recent months, and it is encouraging to see that sector remain on solid footing,” said AIA Chief Economist Kermit Baker. “However, we’re seeing some slowing in the other major construction sectors. Design billings for residential projects had its first negative month in over three years, and commercial design billings have seen only modest growth in recent years.”