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 16, 2012
Suffolk completes construction on progressive operating suite
5,700 square-foot operating suite to be test bed for next generation of imaged-guided operating techniques.
| Jan 15, 2012
Hollister Construction Services oversees interior office fit-out for Harding Loevner
The work includes constructing open space areas, new conference, trading and training rooms, along with multiple kitchenettes.
| Jan 15, 2012
Smith Consulting Architects designs Flower Hill Promenade expansion in Del Mar, Calif.
The $22 million expansion includes a 75,000-square-foot, two-story retail/office building and a 397-car parking structure, along with parking and circulation improvements and new landscaping throughout.
| Jan 15, 2012
535 Madison Avenue achieves LEED Gold certification
Class-A commercial building meets sustainability requirements of LEED Program.
| Jan 12, 2012
CSHQA receives AIA Northwest & Pacific Region Merit Award for Idaho State Capitol restoration
After a century of service, use, and countless modifications which eroded the historical character of the building and grounds, the restoration brought the 200,000-sf building back to its former grandeur by restoring historical elements, preserving existing materials, and rehabilitating spaces for contemporary uses.
| Jan 12, 2012
Stellar earns construction industry's most prestigious safety award
Now widely accepted as the construction industry's standard measure of safety performance, the STEP awards were established in 1989 to evaluate and improve safety practices and recognize outstanding safety efforts.
| Jan 12, 2012
Building independence: New take on female power
Memoir explores historic engineering project, women's empowerment era.
| Jan 12, 2012
3M takes part in Better Buildings Challenge
As a partner in the challenge, 3M has committed to reduce energy use by 25% in 78 of its plants, encompassing nearly 38 million-sf of building space.
| Jan 11, 2012
DOE announces guide for 50% more energy efficient retail buildings
The 50% AEDG series provides a practical approach for designers and builders of retail stores, and other major commercial building types, to achieve 50% energy savings compared to the building energy code used in many parts of the nation.
| Jan 11, 2012
Mortenson starts construction of Rim Rock Wind Project
Renewable energy contractor to build 189-megawatt wind project in Sunburst, Mont.
