Led by a still active multi-family housing market and sustained by solid levels of demand for new commercial and retail properties, the Architecture Billings Index has accelerated to its highest score in nearly a year.
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 May ABI score was 53.1, up sharply from the mark of 50.6 in the previous month. This score reflects an increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 60.1, up from a reading of 56.9 the previous month.
“Business conditions at design firms have hovered around the break-even rate for the better part of this year,” said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. “Demand levels are solid across the board for all project types at the moment. Of particular note, the recent surge in design activity for institutional projects could be a harbinger of a new round of growth in the broader construction industry in the months ahead.”
Key May ABI highlights:
- Regional averages: West (53.8), South (53.7), Northeast (51.2), Midwest (49.9)
- Sector index breakdown: multi-family residential (53.7), institutional (53.0), commercial/industrial (51.0), mixed practice (51.0),
- Project inquiries index: 60.1
- Design contracts index: 52.8
- 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
Architects | Dec 15, 2015
ULI names Lord Richard Rogers the 2015 J.C. Nichols Prize winner
Rogers, Founder of Rogers Stirk Harbour + Partners, works on projects that “shine a spotlight on the challenges that people in urban areas are facing."
Market Data | Dec 15, 2015
AIA: Architecture Billings Index hits another bump
Business conditions show continued strength in South and West regions.
Architects | Dec 14, 2015
New LEGO line lets builders construct iconic skylines
New York City, Berlin, and Venice are featured in the Architecture Skyline Collection.
Architects | Dec 14, 2015
Date named for announcement of 2016 Laureate of the Pritzker Architecture Prize
The Laureate will be named the morning of January 13.
Architects | Dec 9, 2015
Architecture firms Cooper Carry and The Johnson Studio merge
The combination is expected to bolster each firm’s hospitality-related services.
Industry Research | Dec 8, 2015
AEC leaders say the 'talent wars' are heating up: BD+C exclusive survey
A new survey from Building Design+Construction shows that U.S. architecture, engineering, and construction firms are being stymied by the shortage of experienced design and construction professionals and project managers.
Architects | Dec 4, 2015
Denise Scott Brown and Robert Venturi win 2016 AIA Gold Medal Award
The husband and wife architect team—founders of VSBA Architects and Planners—are the award's first joint winners.
Architects | Dec 3, 2015
LMN Architects wins 2016 AIA Architecture Firm Award
The firm is known for projects like Vancouver Convention Centre West and the University of Washington’s Foster School of Business.
Greenbuild Report | Dec 1, 2015
Data centers turn to alternative power sources, new heat controls and UPS systems
Data centers account for 2% of the nation’s electricity consumption and about 30% of the power used annually by the economy’s information and communications technology sector, according to the National Renewable Energy Laboratory.
Greenbuild Report | Nov 30, 2015
10 megatrends shaping the future of green building
Increased competition among green building rating systems, the rise of net-zero buildings, and a sharper focus on existing structures are among the trends that will drive sustainability through 2020, according to author and green building expert Jerry Yudelson.
