TRG | The Bottom Line – 6/25

The Architectural Billing Index (ABI) this past week again showed prospective signs of positive future trends for the non-res end market. May’s 58.5 was further improvement over April’s 57.9 (Note: Any score above 50 indicates an increase in billings). Putting this into perspective, May’s ABI score is one of the highest in the index’s 25-year history. Commercial/Industrial segment is still leading the charge at 60.6, and other categories continues to see positive momentum (multi-family resi 59.5, mixed practice 57.9, institutional 57.1). From a geographic standpoint, the Midwest was a standout at 63.4. All four reporting regions were above 50. Office furniture manufacturer Steelcase (NYSE: SCS) and building product producer Gypsum Management and Supply (NYSE: GMS) earnings this week confirmed relative improvement in the non-res end market, a sequential positive trend from earlier in 2021. Steelcase, in particular, saw 30% sequential growth in orders in the Americas, while EMEA posted  44% YOY increase in orders. Growth in the Americas has been fueled by small and medium-sized businesses, and from a geographic perspective, middle America has been the bigger driver for growth.