Buoyed by increasing levels of demand across all project types, the Architecture Billings Index (ABI) was positive in June for the fifth consecutive month.
As a leading economic indicator of construction activity, the ABI reflects the approximate nine to 12 month lead time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the June ABI score was 52.6, down from the mark of 53.1 in the previous month. This score still reflects an increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 58.6, down from a reading of 60.1 the previous month.
“Demand for residential projects has surged this year, greatly exceeding the pace set in 2015. This suggests strong future growth for housing in the coming year,” said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. “While we expect to see momentum continue for the overall design and construction industry in the months ahead, the fact that the value of design contracts dipped into negative territory in June for the first time in more than two years is something of a concern.”
Key June ABI highlights:
- Regional averages: South (55.5), West (54.1), Northeast (51.8), Midwest (48.2)
- Sector index breakdown: multi-family residential (57.9), institutional (52.7), mixed practice (51.0), commercial / industrial (50.3)
- Project inquiries index: 58.6
- Design contracts index: 49.7
- The regional and sector categories are calculated as a 3-month moving average, whereas the national index, design contracts and inquiries are monthly numbers.
Related Stories
Giants 400 | Dec 3, 2020
2020 K-12 School Sector Giants: Top architecture, engineering, and construction firms in the U.S. K-12 school facilities sector
AECOM, Gilbane, and PBK head BD+C's rankings of the nation's largest K-12 school facilities sector architecture, engineering, and construction firms, as reported in the 2020 Giants 400 Report.
Giants 400 | Dec 3, 2020
2020 Sports Facilities Sector Giants: Top architecture, engineering, and construction firms in the U.S. sports facilities sector
Kimley-Horn, Mortenson, and Populous top BD+C's rankings of the nation's largest sports facilities sector architecture, engineering, and construction firms, as reported in the 2020 Giants 400 Report.
Giants 400 | Dec 3, 2020
2020 Office Sector Giants: Top architecture, engineering, and construction firms in the U.S. office building sector
Gensler, Jacobs, and STO Building Group head BD+C's rankings of the nation's largest office building sector architecture, engineering, and construction firms, as reported in the 2020 Giants 400 Report.
Giants 400 | Dec 3, 2020
2020 Hotel Sector Giants: Top architecture, engineering, and construction firms in the U.S. hospitality sector
Gensler, Jacobs, and Suffolk Construction top BD+C's rankings of the nation's largest hotel sector architecture, engineering, and construction firms, as reported in the 2020 Giants 400 Report.
Giants 400 | Dec 3, 2020
2020 Healthcare Sector Giants: Top architecture, engineering, and construction firms in the U.S. healthcare facilities sector
HDR, Jacobs, and Turner top BD+C's rankings of the nation's largest healthcare facilities sector architecture, engineering, and construction firms, as reported in the 2020 Giants 400 Report.
Giants 400 | Dec 3, 2020
2020 Government Sector Giants: Top architecture, engineering, and construction firms in the U.S. government buildings sector
HNTB, Jacobs, and Turner top BD+C's rankings of the nation's largest government sector architecture, engineering, and construction firms, as reported in the 2020 Giants 400 Report.
Giants 400 | Dec 3, 2020
2020 Cultural Facilities Giants: Top architecture, engineering, and construction firms in the U.S. cultural facilities sector
AECOM, Arup, and Populous head BD+C's rankings of the nation's largest cultural facilities sector architecture, engineering, and construction firms, as reported in the 2020 Giants 400 Report.
Giants 400 | Dec 2, 2020
2020 Retail Giants: Top architecture, engineering, and construction firms in the U.S. retail building sector
Gensler, Jacobs, and PCL Construction top BD+C's rankings of the nation's largest retail sector architecture, engineering, and construction firms, as reported in the 2020 Giants 400 Report.
Giants 400 | Dec 2, 2020
2020 University Giants: Top architecture, engineering, and construction firms in the higher education sector
Gensler, AECOM, and Turner Construction top BD+C's rankings of the nation's largest university sector architecture, engineering, and construction firms, as reported in the 2020 Giants 400 Report.
Giants 400 | Dec 2, 2020
2020 Multifamily Sector Giants: Top architecture, engineering, and construction firms in the U.S. multifamily building sector
Clark Group, Humphreys & Partners Architects, and Kimley-Horn head BD+C's rankings of the nation's largest multifamily building sector architecture, engineering, and construction firms, as reported in the 2020 Giants 400 Report.
