More Bullish News for Materials Stocks

Today the American Institute of Architects (AIA) released their monthly Architecture Billings Index (ABI) for February. The score came in at 54.9, up from 54.2 in January. The new projects inquiry list came in at 64.8, up from 63.2 last month and at the highest level since January 2007.

“Conditions have been strengthening in all regions and construction sectors for the last several months,” said the AIA Chief Economist. This includes commercial and industrial facilities like hotels and office buildings, multi-family residential, as well as schools, hospitals and other institutions. 

What does this mean to you??

Well as the demand for large projects increases it suggests that "big" money is back in the game and committing large amounts of cash. It also suggests the demand for materials will be increasing. Everything from lumber to cement to steel. The numbers will also be a boost for firms that supply the equipment and architectural services.

Stocks and ETFs to Watch:

• iShares S&P Global Infrastructure ETF ($IGF)
• iShares S&P Global Timber & Forestry ETF ($WOOD)
• Beacon Roofing Supply ($BECN)
• USG Corporation ($USG)
• Cemex ($CX) - Cement