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Takeaway: The ABI fell out of bed in April, signaling contraction for the first time in eight months.

The Architectural Billings Index (ABI) fell out of bed in April, signaling contraction for the first time in eight months.  The index is supposed to lead non-residential construction activity by 9-12 months. The index suggests that, while non-residential construction activity may continue to strengthen through 2013, it may soften around year-end/early 2014.  The weaker ABI is a potentially negative data point for a number of non-residential construction exposed companies/industries, such as TEX, MTW, URI, Steel & E&Cs.  Given the significant optimism around the non-residential construction rebound, it is a noteworthy reversal.

Just Charts: Architectural Billings - Picture1