Architecture billings rebound modestly in February

By: David Dykes//March 24, 2016//

Architecture billings rebound modestly in February

By: David Dykes//March 24, 2016//

Listen to this article

A leading indicator for construction spending bounced back in February, particularly in the South, following a negative reading in January, according to Anika R. Khan, a senior economist with Charlotte-based Wells Fargo Securities.

Architecture billings rose 0.7 percentage points to 50.3, barely above the line indicating expansion. That suggests some moderation in construction activity is imminent, Khan said in a research report this month.

On a regional basis, billings in the South continued to post gains, while all other areas fell below the threshold of 50, Khan said.

By sector, multifamily and commercial/industrial rose during the month. Institutional and mixed-use contracted.

Billings typically are a leading indicator for construction outlays, providing a forward-looking signal for up to 12 months, Khan said.

“Given the recent trend in services, we are forecasting a slower pace of construction spending this year,” she said. “Private nonresidential construction spending rose almost 12 percent in 2015, but will likely increase at a single-digit rate this year as growth in industrial and institutional spending moderates.”

 

Latest News

See All Latest News

Features

See All Features

Polls

Will the Trump Organization ever go through with a purchase of The Point Lake and Golf Club in Mooresville?

View Results

Loading ... Loading ...