The Architecture Billings Index lost some ground in October, but it was less than a point, and the ABI has consistently been above its benchmark level of 50 for most of 2015. This is a sign that the design and construction industries remain in good shape, according to the American Institute of Architects.

After a sharp rebound in September, the Architecture Billings Index slipped a bit in October to 53.1, down from 53.7 the prior month, the American Institute of Architects reports.

Index readings of 50 or higher equates to an aggregate increase in billings, while scores below 50 point to a decline. In 2015, the ABI has been above 50 in seven of the year's 10 months.

As a leading economic indicator of construction activity, the ABI reflects the approximate lead-time of nine to 12 months typically required between architecture billings and construction spending.

The AIA also maintains a new projects inquiry index. In October, this index came in at 58.5, down from 61.0 the previous month.

"Allowing for the possibility of occasional and minor backsliding, we expect healthy business conditions for the design and construction industry to persist moving into next year," said Kermit Baker, chief economist for the AIA. "One area of note is that the multifamily project sector has come around the last two months after trending down for the better part of the year."

Key October ABI highlights:
• Regional averages: Midwest, 52.6; Northeast, 49.2; South, 56.2; West, 54.4.
• Sector index breakdown: commercial-industrial, 55.1; mixed practice, 54.9; multi-family residential, 52.5; institutional, 51.4.
• Project inquiries index: 58.5
• Design contracts index: 51.7

American Institute of Architects:
https://www.aia.org/press/AIAB107625

Nonresidential Construction Slips in October
The pace of nonresidential construction dropped slightly in October, compared to the previous month, Construction Market Data Group said.

Excluding residential projects, the level of starts slipped to $24.6 billion, a decline of 2.5 percent on a month-to-month basis. It also represents a decrease of 3.4 percent when compared to October 2014. However, starts have increased 5.2 percent year-to-date, or from January through the end of October, compared to the same time frame in 2014.

The five major CMD categories are commercial, industrial, institutional, miscellaneous nonresidential building and heavy engineering.

October 2015 vs. September 2015
Industrial plummeted 71.0 percent, and heavy engineering declined 6.7 percent. The other sectors sustained nominal losses. Commercial was down 2.5 percent; institutional dropped 2.1 percent; and nonresidential miscellaneous slipped 1.1 percent.

October 2015 vs. October 2014
Industrial declined again by a substantial amount, this time by 87.4 percent. Institutional shed 17.5 percent; commercial dropped 11.2 percent; and miscellaneous lost 17.1 percent. Heavy engineering was the only sector to post a year-to-year gain, as it was up 22.8 percent.

January-to-October 2015 vs. January-to-October 2014
Industrial is the big gainer in this comparison, up 48.3 percent. Commercial was down 1.2 percent; institutional dropped 4.9 percent; and heavy engineering shed 15.0 percent. Miscellaneous slipped 0.3 percent.

Construction Market Data Group:
https://tinyurl.com/n9du9y4

HMI Drops Three Points in November
Homebuilders are concerned about the lack of qualified construction workers and properties on which to create additional housing.

It was enough of a worry in November, as builders lowered the National Association of Home Builders' Housing Market Index by three points, dropping the HMI to 62.

The HMI measures the confidence of homebuilders in the market for new single-family houses, but the NAHB says it's a good sign that the index has consistently been in the 60s for some time now.

"Even with this month's drop, builder confidence has remained in the 60s for six straight months "?u a sign that the single-family housing market is making long-term headway," said Tom Woods, NAHB chairman. "However, our members continue to voice concerns about the availability of lots and labor."

The HMI is derived from a monthly survey that NAHB has been conducting for 30 years. The NAHB asks builder-members to assess current single-family home sales, sales expectations for the next six months and the rate traffic of prospective buyers.

Scores for each component are then used to calculate the index, and any number over 50 indicates that more builders view conditions as good than poor.

November's reading comes after an unusually high index in October, said David Crowe, the NAHB's chief economist. But the latest HMI is more in line with the consistent and modest growth the market has experienced of late.

"A firming economy, continued job creation and affordable mortgage rates should keep housing on an upward trajectory as we approach 2016," Crowe added.

National Association of Home Builders:
https://tinyurl.com/o744goa