The Architecture Billings Index declined 3.8 points in November to a reading of 49.3, reflecting a decrease in architecture design services for the month.

The Northeast and Midwest regions proved to be a drag on the Architecture Billings Index for the month of November, as the ABI dropped 3.8 points into negative territory.

November's reading was 49.3, down from 53.1 in October. Scores below 50 reflect a decrease in design services, while readings above 50 show the opposite.

The ABI has been up and down in 2015, as increases have been realized in six of the 11 months. Even though the West and South regions recorded scores above 50 "?u at 54.5 and 55.4 respectively "?u the Northeast and Midwest did not fare as well. The Northeast dropped to 46.2, while the Midwest declined to 47.8.

The ABI is a leading economic indicator of construction activity, and is a reflection of the approximate 9-to-12-months that typically passes between architecture billings and construction spending. "Since architecture firms continue to report that they are bringing in new projects, this volatility in billings doesn't seem to reflect any underlying weakness in the construction sector," said Kermit Baker, AIA chief economist.

"Rather, it could reflect the uncertainty of moving ahead with projects given the continued tightness in construction financing and the growing labor shortage problem gripping the entire design and construction industries," Baker said.

The American Institute of Architects also maintains a new projects inquiry index, which improved slightly to 58.6, up from 58.5 the previous month.

Details: https://www.aia.org/press/AIAB107771

December Housing Market Index Falls One Point
Homebuilding companies have been confident about the housing market for most of the year, and that collective sentiment changed little in the month of December.

The National Association of Home Builders Housing Market Index remained relatively flat, falling a mere one point to 61.

"Overall, builders are optimistic about the housing market, although they are reporting concerns with the high price of lots and labor," said Tom Woods, chairman of the NAHB.

The HMI has averaged in the low 60s for most of 2015, a trend that the NAHB says is an indication that the housing market has been recovering.

"With job creation, economic growth and growing household formations, we anticipate the housing market to continue to pick up traction as we head into 2016," said David Crowe, chief economist for the NAHB.

The HMI is compiled from a monthly survey of homebuilders across the nation. They are asked to assess current single-family home sales and sales expectations for the next six months. Builders are also asked to rate the traffic of prospective buyers.

Scores for each component are then used to calculate the HMI for the month. Any reading over 50 indicates that more builders view conditions as good than poor.

All three HMI components posted modest losses in December. Sales expectations over the next six months fell two points to 67. Current sales conditions shed one point to 66. Buyer traffic dropped two points to 46.

On a regional basis: the West increased three points to 76; the Northeast rose on point to 50; the Midwest dropped two points to 58; the South fell a point to 64.

National Association of Home Builders: https://tinyurl.com/zpa5bdj