U.S. non-residential construction seen steady -AIA
NEW YORK, May 23 (Reuters) - The U.S. non-residential construction industry is in the midst of a sustained, moderate expansion despite rising commodity and labor costs, an architects group said on Wednesday.
An architecture billings index, a leading indicator of construction activity, registered a reading of 52.7 last month, up slightly from 52.6 in March, which in turn was up from February, the American Institute of Architects (AIA) said.
Any reading above 50 indicates expansion.
Construction spending typically lags architects' billings by about six to nine months as designs are realized, the group said. Meanwhile, an index of inquiries for new building projects was up sharply in April, suggesting a favorable outlook for the rest of 2007.
Companies with significant exposure to non-residential construction include Acuity Brands Inc. (AYI.N), Genlyte Group Inc. GLYT.O, Hubbell Inc. (HUBb.N), Thomas & Betts Corp. (TNB.N), Cooper Industries Ltd. (CBE.N), and Honeywell International Inc. (HON.N).
