Building Activity Indicators

AAA

DEFINITION of 'Building Activity Indicators'

Economic reports that tell investors about the current and projected level of demand for residential, commercial and/or industrial construction. Building activity indicators are an important sign of the strength of weakness of the broader economy, due to construction's important role in the economic sector. If businesses are willing to invest in new construction, it is a sign that the economy is doing well or poised to recover. If they aren't, the economy may be weak or headed for trouble.

INVESTOPEDIA EXPLAINS 'Building Activity Indicators'

One popular indicator of building activity is the Architecture Billings Index. This leading economic indicator asks architecture firms whether their billing activity grew, declined or remained flat in the previous month. Changes in architecture billings tell us what is likely to happen with construction spending nine to 12 months in the future. Other popular indicators of building activity include the U.S. Census Bureau's New Residential Construction Index and its New Residential Sales Index.

RELATED TERMS
  1. Business Cycle

    The fluctuations in economic activity that an economy experiences ...
  2. Lagging Indicator

    1. A measurable economic factor that changes after the economy ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy ...
  4. Economic Indicator

    A piece of economic data, usually of macroeconomic scale, that ...
  5. Coincident Indicator

    A metric which shows the current state of economic activity within ...
  6. Lion economies

    A nickname given to Africa's growing economies.
Related Articles
  1. Understanding The Consumer Confidence ...
    Economics

    Understanding The Consumer Confidence ...

  2. Economic Indicators That Do-It-Yourself ...
    Investing Basics

    Economic Indicators That Do-It-Yourself ...

  3. Leading Economic Indicators Predict ...
    Active Trading

    Leading Economic Indicators Predict ...

  4. Using Base Metals As An Economic Indicator
    Fundamental Analysis

    Using Base Metals As An Economic Indicator

comments powered by Disqus
Hot Definitions
  1. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  4. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  5. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center