Building permits surge in July. Building permits in July hit a seasonally adjusted annual rate of 1,052,000, according to the U.S. Census Bureau, an 8.1% increase from the revised June rate of 973,000 and a 7.7% increase from the July 2013 estimate of 977,000. Single-family authorizations in July were at a rate of 640,000; 0.9% above the revised June figure of 634,000. Authorizations of units in buildings with five units or more were at a rate of 382,000 in July.
Architecture Billings Index hits highest level since 2007. The last three months have shown steadily increasing demand for design services and the Architecture Billings Index (ABI) published monthly by the American Institute of Architects (AIA), Washington, D.C. 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 AIA reported the July ABI score was 55.8, up noticeably from a mark of 53.5 in June. This score reflects an increase in design activity (any score above 50 indicates an increase in billings). The new projects inquiry index was 66.0, following a very strong mark of 66.4 the previous month.
“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,” said AIA Chief Economist Kermit Baker. “The key to a more widespread boost in design activity continues to be the institutional sector which is starting to exhibit signs of life after languishing for the better part of the last five-plus years.”
Industrial purchasing managers feeling good about the economy. The July Purchasing Managers Index (PMI) published monthly by the Tempe, Ariz.-based Institute for Supply Management (ISM) Manufacturing Business Survey Committee registered 57.1%, an increase of 1.8 percentage points from June’s reading of 55.3%, indicating expansion in manufacturing for the 14th consecutive month. The New Orders Index registered 63.4 percent, an increase of 4.5 percentage points from the 58.9% reading in June, indicating growth in new orders for the 14th consecutive month. Any reading over 50% points toward a healthy manufacturing environment.