Latest from Economic Data
3Q 2024's Billion-Dollar Mega-Projects
Building permits slide 3.9% in March. While the March tally was off from February, the U.S. Census Bureau says the seasonally adjusted annual rate of 902,000 total building permits for the month was 17.3% above the March 2012 estimate of 769,000. Single-family authorizations in March were at a rate of 595,000, 0.5% below the revised February figure of 598,000. Authorizations of units in buildings with five units or more were at a rate of 283,000 in March.
Architecture Billings Index shows continuing strength in February. It will be interesting to see if the latest data for the Architecture Billings Index (ABI) to be released within the week continued its steady climb in March. The American Institute of Architects (AIA) reported the February ABI score was 54.9 points, up slightly from a mark of 54.2 points in January. This score reflects a strong increase in demand for design services (any score above 50 indicates an increase in billings).
The new projects inquiry index was 64.8 points, higher than the reading of 63.2 points the previous month and its highest mark since January 2007. 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. “Conditions have been strengthening in all regions and construction sectors for the last several months,” said AIA Chief Economist, Kermit Baker. “Still, we also continue to hear a mix of business conditions in the marketplace as this hesitant recovery continues to unfold.”
PMI slides 2.9 points in March. The Purchasing Managers Index (PMI) registered 51.3%, a decrease of 2.9 percentage points from February’s reading of 54.2%, indicating expansion in manufacturing for the fourth consecutive month, but at a slower rate. The latest PMI, published by the Tempe, Ariz.-based Institute for Supply Management Manufacturing Business Survey Committee, showed that both the New Orders and Production Indexes reflected growth in March compared to February, although at slower rates, registering 51.4% and 52.2%, respectively. Any reading over 50 points indicates growth conditions in the manufacturing segment.