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Commercial Loans St Louis: Construction Activity Up

January 16th, 2011 3:38 PM

Home Mortgage and Commercial Loans | Principal Reductions
877-334-0210 or 314-334-0210|Floyd Tapia

The September Architecture Billings Index was up 2.2 points to 50.4, marking the fourth consecutive month of increases, the American Institute of Architects (AIA) said.

The score reflects a rise in demand for design services, as any score above 50 indicates an increase in billings, the AIA said.

"The strong upturn in design activity in the commercial and industrial sector certainly suggests that this upturn can possibly be sustained," said Kermit Baker, AIA's chief economist.

He continues: "But we will need to see consistent improvement over the next few months in order to feel comfortable about the state of the design and construction industry."

The AIA'S separate, less predictive, project inquiries index rose to 62.3, from 54.6 in August, reaching its best level since July 2007.

Project inquiries typically produce a higher reading than actual billings because multiple architecture firms bid on the same work.

The billings index is an indicator of construction spending nine to 12 months in the future.

It is regularly cited by companies that sell into the sector as a reliable gauge of demand.

Most diversified industrial companies get at least some revenue from nonresidential construction, selling either machinery used in construction or the components of a building: elevators, electrical and lighting systems, heating and cooling and security networks, for example.

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