Architectural Billings Index: October 2020 ABI national overall score of 47.5 was up 0.5 from September’s 47.0, which is slightly under the expansionary zone, (>50). Firms concentrating in multi-family residential saw index and momentum gains in October.

The new design contracts index increased by 2.8 points to 51.7. Regional monthly scores were South 45.8, West 50.4, Midwest 49.4 and Northeast 44.9.

The Architecture Billings Index is a leading economic indicator that provides an approximately nine to twelve-month glimpse into the future of nonresidential construction spending activity. The results are seasonally adjusted to allow for comparison to prior months. Scores above 50 indicate an aggregate increase in billings, and scores below 50 indicating a decline.

Figure 1 lists the overall ABI and all its sub-indexes. It presents and compares monthly and 3MMA data, showing percentage point change on both three and 12-month basis, as well as momentum. Green denotes positive change, while red indicates negative growth. National momentum, (3-month y/y minus 12-month y/y) was positive 5.0% while design contract momentum was positive 8.9%. Multi-family residential and commercial/ industrial posted a positive momentum; institutional recorded negative momentum.

At Gerdau we follow the ABI because it is a leading indicator of non-residential construction activity with an approximate 12-month lead-time to ground-breaking. The ABI has a proven track record and as such it is useful for business planning purposes.