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
| Jan 2, 2013
M&A activity at U.S. AEC firms up slightly
Total mergers and acquisitions in the AEC industry hit 171 in 2012, up slight from the 169 deals in 2011.
| Jan 2, 2013
Global data center market to ‘slow’ to 14.3% this year
Total global investment in data centers is expected to slow down somewhat this year but still increase at a respectable 14.3%, according to DCD Intelligence.
| Jan 2, 2013
Construction jobs made gains in 2012, even with a slow Q4, says Gilbane report
The construction sector in the nine states with 50% of construction employment was up 169,000 jobs from February to September 2012, following a lost of 137,000 jobs from September 2011 to January 2012.
| Dec 21, 2012
ABI gains for fourth straight month
Positive business conditions for all building sectors.
| Dec 17, 2012
CSM Group names recipient of the CSM Architect Fellowship Grant
With the money from the grant, Harlow has chosen to use it entirely for the Chapter of American Institute of Architecture Student’s Freedom by Design Program at Andrews University.
| Dec 9, 2012
AIA: Laboratory design, building for breakthrough science
To earn 1.0 AIA/CES learning units, study the article carefully and take the exam.
| Dec 9, 2012
The owner’s perspective: high-rise buildings
Douglas Durst on the practicalities of development: “You must think about a building from the inside out.”
| Dec 9, 2012
Greenzone pop quiz
Greenbuild attendees share their thoughts with BD+C on the SAGE modular classroom.
