Electrical Marketing's Key Economic Indicators

Building permits see nice bump in November

Privately-owned housing units authorized by building permits in November were at a seasonally adjusted annual rate of 1,505,000, + 6.1% above the revised October rate of 1,419,000, but -0.2% below the November 2023 rate of 1,508,000.

The latest housing data from the U.S. Census Bureau showed that single-family authorizations in November were at a rate of 972,000, +0.1% above the revised October figure of 971,000. Authorizations of units in buildings with five units or more were at a rate of 481,000 in November.

Conference Board believes the 2025 U.S. economy will grow despite some challenges

The association said in a recent post, “The U.S. economy is set to end 2024 on strong footing after a year of surprisingly robust growth. However, myriad uncertainties loom over 2025, suggesting somewhat slower economic activity next year and material two-sided risks. The economy should expand at an upwardly revised pace of +2.7% year-over-year in 2024 (from +2.6%) and +2% in 2025 (from +1.7%). ”

AIA Billings Index remains steady in November

The AIA/Deltek Architecture Billings Index (ABI) dipped slightly below 50 points for November. The index score of 49.6 points changed little from October’s score of 50.3 points, meaning bearish architects reported declining billings at about the same rate as bullish architects reporting increasing billings. Any score below 50 points indicates decreasing business conditions, but encouraging signs exist in the pipeline.

The American Institute of Architects said the return of billings to a stable level after nearly two years of decline signals potential improvement across the industry. Additionally, inquiries into new projects are steadily increasing, demonstrating sustained interest in future work opportunities. However, newly signed design contracts have experienced an eighth consecutive month of decline, suggesting an upturn in design activity is still distant.
“Given the extended weakness in business conditions at architecture firms, increasing firm profitability remains the top concern for 2025, with one-third of firm leaders selecting it as a major issue — the highest since 2017,” said Kermit Baker, AIA chief economist, in the press release.