The Architecture Billings Index (ABI) recorded its sixth consecutive positive month, according to a new report today from The American Institute of Architects (AIA).
The ABI score for July was 54.6. While this was down slightly from June’s score of 57.1, it still indicates very strong business conditions overall (any score above 50 indicates an increase in billings from the prior month). Scoring for new project inquiries also declined in July but remained near its all-time high at 65.0. The score for new design contracts was essentially unchanged from June to July with a score of 58.0.
“In prior business cycles, architecture firms generally saw their project work soften quickly and then recover slowly,” said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. “So the strength of this recovery is unprecedented. Firm leaders who have leaned into this economic upturn by reinvesting in their firms by hiring staff and upgrading their technology, will likely have a better year than those that anticipated a slower recovery.”
Key ABI highlights for July include:
- Regional averages: Midwest (58.3); West (56.0); South (54.6); Northeast (54.1)
- Sector index breakdown: commercial/industrial (58.4); institutional (55.4); multi-family residential (54.7); mixed practice (54.4)
The regional and sector categories are calculated as a three-month moving average, whereas the national index, design contracts and inquiries are monthly numbers.
To learn more about recent economic developments impacting design and construction, visit AIA’s website.
Related Stories
Market Data | Jun 16, 2021
Producer prices for construction materials and services jump 24% over 12 months
The 24.3% increase in prices for materials used in construction from May 2020 to last month was nearly twice as great as in any previous year
Market Data | Jun 15, 2021
ABC’s Construction Backlog inches higher in May
Materials and labor shortages suppress contractor confidence.
Market Data | Jun 11, 2021
The countries with the most green buildings
As the country that set up the LEED initiative, the US is a natural leader in constructing green buildings.
Market Data | Jun 7, 2021
Construction employment slips by 20,000 in May
Seasonally adjusted construction employment in May totaled 7,423,000.
Market Data | Jun 2, 2021
Construction employment in April lags pre-covid February 2020 level in 107 metro areas
Houston-The Woodlands-Sugar Land and Odessa, Texas have worst 14-month construction job losses.
Market Data | Jun 1, 2021
Nonresidential construction spending decreases 0.5% in April
Spending was down on a monthly basis in nine of 16 nonresidential subcategories.
Market Data | Jun 1, 2021
Nonresidential construction outlays drop in April to two-year low
Public and private work declines amid supply-chain woes, soaring costs.
Market Data | May 24, 2021
Construction employment in April remains below pre-pandemic peak in 36 states and D.C.
Texas and Louisiana have worst job losses since February 2020, while Utah and Idaho are the top gainers.
Market Data | May 19, 2021
Design activity strongly increases
Demand signals construction is recovering.
Multifamily Housing | May 18, 2021
Multifamily housing sector sees near record proposal activity in early 2021
The multifamily sector led all housing submarkets, and was third among all 58 submarkets tracked by PSMJ in the first quarter of 2021.
