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
| Dec 8, 2014
The year’s boldest BIM/VDC themes
High-speed rendering software, custom APIs, virtual reality tools, and BIM workflow tips were among the hottest BIM/VDC topics in 2014.
| Dec 8, 2014
AEC firms upbeat about financial results, 2015 looking rosier [exclusive BD+C survey]
The market outlook is brighter for U.S. architecture, engineering, and construction companies, with a majority of AEC firms reporting higher revenues, strong forecasts, and sound financial health, according to BD+C's annual Market Forecast Survey.
| Dec 8, 2014
The global sanitation crisis leads to 2.5 million deaths every year
When we see the incredible technology being produced by global plumbing manufacturers, it’s hard to conceive why no viable technical solution to the global sanitation issue has come forth, writes BD+C's Robert Cassidy.
| Dec 8, 2014
Moshe Safdie wants to reinvent airports with Jewel Changi Airport addition
A new addition to Singapore's Changi Airport, designed by Moshe Safdie, will feature a waterfall and extensive indoor gardens.
| Dec 6, 2014
Future workplace designs shouldn’t need to favor one generation over another, says CBRE report
A new CBRE survey finds that what Millennials expect and need from offices doesn’t vary drastically from tenured employees.
| Dec 5, 2014
Plotting on the go: 3D-printed mechanical compass can print CAD drawings with high precision
Design student Ken Nakagaki has adapted a device to work with CAD software to replicate digital files on paper.
Sponsored | | Dec 5, 2014
New construction outlook report projects growth in 2015
A new 2015 construction outlook report predicts that total U.S. construction starts for 2015 will rise 9% to $612 billion. SPONSORED CONTENT
Sponsored | | Dec 5, 2014
Best practices for force transfer around openings
As wood-frame construction is continuously evolving, designers in many parts of the U.S. are optimizing design solutions that require the understanding of force transfer between elements in the lateral load-resisting system.
| Dec 4, 2014
World’s largest eco-resort to open soon in Indonesia
Just under 10 miles away from Singapore, Funtasy Island (yes, that's the real name) is a resort tucked away in the mangrove islands of the Riau archipelago.
