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
| Feb 28, 2014
Six finalists selected in design competition for Canadian Holocaust monument
David Adjaye and Daniel Libeskind are among the finalists for the National Holocaust Monument, planned near the Canadian War Museum in Ottawa.
| Feb 27, 2014
Gensler reveals 44 design trends for the next decade
The 82-page report covers dozens of emerging trends in healthcare, commercial office, hospitality, tall buildings, and more.
| Feb 27, 2014
Target converts former prison dump into latest big-box store
Target's new San Rafael, Calif., location was built on the site of the former San Quentin prison dump.
| Feb 27, 2014
Open or private offices? It depends on the business plan
Open layouts are grabbing headlines as a hallmark of the new workplace—think the Google campus or Facebook's headquarters. And for smaller-scale operations, open designs are often lauded for being less expensive than private office plans. But does that mean all offices should have an open layout?
| Feb 27, 2014
3 reasons to apply computational fluid dynamics on your next project
From right-sizing mechanical systems to understanding the impact of design alternatives, CFD offers a host of benefits for the Building Team.
| Feb 27, 2014
12 facts about heat-treated glass: Why stronger isn’t always better
Glass is heat-treated for two reasons: the first is to increase its strength to resist external stresses such as wind and snow loads, or thermal loads caused by the sun’s energy. The second is to temper glass so that it meets safety glazing requirements defined by applicable codes or federal standards.
| Feb 27, 2014
Metal Construction Association introduces two Environmental Product Declarations
Two Environmental Product Declarations (EPD), one for Metal Composite Material Panels and one for Roll Formed Steel Panels for Roofs and Walls, are now available free of charge from the Metal Construction Association (MCA) on its website.
| Feb 27, 2014
Bluebeam Software launches Revu 12 for better field-ready document management and project collaboration
The latest version of the company’s flagship solution better enables users in document-intensive industries to digitally collaborate on project documents and more easily connect the office to the field.
| Feb 27, 2014
PocketCake lunches CPU designed for virtual reality simulations
The company's Virtual Reality Simulation Converter Assembly is three times more powerful than the average high-performance computer and allows for up to eight people to experience a virtual reality simulation at the same time.
| Feb 26, 2014
Adaptive reuse project brings school into historic paper mill
The project features nontraditional classrooms for collaborative learning, an arts and music wing, and a technologically sophisticated global resource center.
