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 21, 2012
Three Goettsch leaders elevated to AIA College of Fellows
Honor recognizes significant contributions to architecture and society.
| Feb 21, 2012
Skanska welcomes Morrison and Viviano to Atlanta office
Morrison will serve as a vice president and Viviano will serve as senior director of business development for Georgia.
| Feb 21, 2012
PV America West conference showcases solar growth market
Solar industry gathers March 19-21, 2012 in San Jose to discuss technology, market development and policy.
| Feb 21, 2012
SMPS announces Build Business 2012 keynote speakers
National conference set for July 11–13 in San Francisco.
| Feb 20, 2012
Comment period for update to USGBC's LEED Green Building Program now open
This third draft of LEED has been refined to address technical stringency and rigor, measurement and performance tools, and an enhanced user experience.
| Feb 20, 2012
Sto Corp. announces new technical director for Canada
Edgar will have full responsibility of specifications, details, website technical content, testing and approvals, and will support the Canada sales team.
| Feb 20, 2012
GAF introduces web portal for architects and specifiers
The new portal offers a clean look with minimal clutter to make it easier to find the technical information and product data that architects need.
| Feb 20, 2012
All Steel names Breagy director of metro New York
Breagy is responsible for overseeing this region’s sales team while strategically coordinating the sales efforts of Allsteel dealers and representatives in the tri-state area.
| Feb 17, 2012
Tremco Inc. headquarters achieves LEED Gold certification
Changes were so extensive that the certification is for new construction and not for renovation; officially, the building is LEED-NC.
