Huh... Weird Super-Spike In Architectural Billings, A Leading Real Estate Indicator

Huh.

A big spike in the Architectural Billings Index.

From Chris Toolan at BCAP:

In a bit of a shocker,  the Architectural Billings Index (lead indicator of construction activity)  spiked higher in Aug. The index jumped 6.3 pts from 45.1 to 51.4.  That’s the  biggest m/m change in 5 years (Aug ’06). “Based on the poor economic conditions  over the last several months, this turnaround in demand for design services is  a surprise,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “Many firms  are still struggling, and continue to report that clients are having difficulty  getting financing for viable projects, but it’s possible we’ve reached the  bottom of the down cycle.”

Here’s a chart from Calculated Risk.

Click to enlarge

chart

Photo: Calculated Risk

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