Architecture billings index jumps in March - AIA

* March ABI index jumps 8 pts to 43.7

* Project inquiries index also higher

NEW YORK, April 22 (Reuters) - A leading indicator of U.S.
nonresidential construction activity jumped in March to its best
level since August 2008, an architects' trade group said on
Wednesday.

The Architecture Billings Index rose more than 8 points to
43.7 last month, marking the second consecutive monthly
improvement, according to the American Institute of Architects.
The index has not crossed above 50, a level that indicates
improving demand, since January 2008.

All four geographic regions tracked by the group remained
below 50, as did all four construction subsectors. But a measure
of inquiries for projects rose 7 points to 56.6, its third
consecutive monthly increase.

"The fact that inquiries for new projects increased is
encouraging, but it will likely be a few months before we see an
improvement in overall billings," AIA Chief Economist Kermit
Baker said. "This news should be viewed with cautious
optimism."

The AIA's Billings Index, which began in 1995, is considered
a measure of construction activity nine to 12 months in the
future.

Nonresidential construction includes commercial and
industrial facilities like hotels and office buildings, as well
as institutions like schools and hospitals.

Companies that sell to this market include diversified
manufacturer Honeywell International Inc (HON.N), lighting maker
Acuity Brands Inc (AYI.N) and electrical components maker Thomas
& Betts Corp (TNB.N), as well as heating and cooling systems
makers Ingersoll-Rand Co (IR.N) and Johnson Controls Inc
(JCI.N).

Caterpillar Inc (CAT.N), Deere & Co (DE.N), Terex Corp
(TEX.N), Illinois Tool Works Inc (ITW.N) and Eaton Corp (ETN.N)
are also exposed to the sector.

Eaton Chief Executive Sandy Cutler this week cited the
billings index as one of three signs that demand is stabilizing,
along with slowing cancellations in Eaton's hydraulics business
and improved, stimulus-driven order trends in China.
(Reporting by Nick Zieminski, editing by Matthew Lewis)