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
| Feb 21, 2013
AIA College of Fellows awards 2013 Latrobe Prize for 'The City of 7 Billion'
The American Institute of Architects (AIA) College of Fellows has awarded the 2013 Latrobe Prize of $100,000 for the proposal, “The City of 7 Billion.”
| Feb 21, 2013
BD+C's 2011 White Paper: Zero and Net-Zero Energy Buildings + Homes
We submit our eighth White Paper on Sustainability in the hope that it will inspire architects, engineers, contractors, building owners, developers, building product manufacturers, environmentalists, policymakers, government officials, corporate executives, officeholders, and the public to foster the development of net-zero energy buildings and homes.
| Feb 21, 2013
BD+C's 2008 White Paper: Green Buildings + Climate Change
In this White Paper, we provide concrete ways in which AEC professionals can have a positive role in addressing climate change.
| Feb 21, 2013
Holl videos discuss design features of Chengdu ' Porosity Block' project
Architect Steven Holl has released two short films describing the development of Sliced Porosity Block in Chengdu, China.
| Feb 21, 2013
Construction team chosen for world's tallest building in Jeddah, Saudi Arabia
Construction team chosen for world's tallest building in Jeddah, Saudi Arabia.
| Feb 21, 2013
Stephen C. Wright joins Leo A Daly as Managing Principal in D.C.
International architecture, planning, engineering, interior design and program management firm LEO A DALY welcomes Stephen C. Wright, AIA, as the new managing principal of the Washington, D.C., office. Wright will oversee the D.C. team in executing federal, local government, private and non-profit projects and pursuing new business opportunities in markets including aviation, corporate and commercial, higher education, hospitality and institutional facilities.
| Feb 20, 2013
Architecture Billings Index sees strongest growth since 2007
The American Institute of Architects reported the January ABI score was 54.2, up sharply from 51.2 in December. This score reflects a strong increase in demand for design services.
| Feb 19, 2013
'Pop-up' proposal would create movable cultural venue for NYC
The Culture Shed, a proposed 170,000-sf project for New York City's Hudson Yards development, could be the ultimate in "pop-up" facilities.
