According to a report released Wednesday by the American Institute of Architects (AIA), the Architecture Billings Index rose to 51.0 in February, from 50.9 the previous month, indicating a slight increase in demand for design services. Any measure above 50 indicates expansion and stronger construction activity nine to 12 months ahead.
A separate index of project inquiries rose to 63.4, from 61.2 the prior month, its highest level since July 2007. However, the AIA said clients remain cautious about breaking ground on new projects, and construction financing remains scarce for developers who are willing to pursue projects.
Most diversified industrial companies derive a portion of their sales from nonresidential construction such as office buildings, and retail and warehouse space, though sales of building components or construction equipment.