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
| Apr 11, 2012
C.W. Driver completes Rec Center on CSUN campus
The state-of-the-art fitness center supports university’s goal to encourage student recruitment and retention.
| Apr 10, 2012
JE Dunn completes two medical office buildings at St. Anthony’s Lakewood, Colo. campus
Designed by Davis Partnership Architects, P.C., Medical Plaza 1 and 2 are four-story structures totaling 96,804-sf and 101,581-sf respectively.
| Apr 10, 2012
THINK [about architecture] Scholarship enters 15th year
Students are invited to submit two-minute creative videos that illustrate how they interact with their school's design and what the space makes possible.
| Apr 10, 2012
Structured Development & Bucksbaum close on new retail site in Chicago
The site is the location of New City, a mixed-use development that will feature 370,000-sf of retail space and 280 residential rental units.
| Apr 10, 2012
Moriarty & Associates selected as GC for Miami’s BrickellHouse Condo
Construction of the 46-story development is schedule to get underway this summer and be completed in 2014.
| Apr 6, 2012
Flat tower green building concept the un-skycraper
A team of French designers unveil the “Flat Tower” design, a second place winner in the 2011 eVolo skyscraper competition.
| Apr 6, 2012
National Association of Women in Construction forum to be hosted in Philadelphia
The April Forum, titled “Declare your Independence!” will feature educational sessions on topics ranging from Managing the Generation Gap and Dealing with Contract language across state borders to Strategic and Succession Planning.
| Apr 6, 2012
Rooftop solar energy program wins critical approval from L.A. city council
Los Angeles Business Council applauds decision allowing LADWP to create new national model for rooftop solar energy
