Buoyed by increasing levels of demand across all project types, the Architecture Billings Index (ABI) was positive in June for the fifth consecutive month.
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 June ABI score was 52.6, down from the mark of 53.1 in the previous month. This score still reflects an increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 58.6, down from a reading of 60.1 the previous month.
“Demand for residential projects has surged this year, greatly exceeding the pace set in 2015. This suggests strong future growth for housing in the coming year,” said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. “While we expect to see momentum continue for the overall design and construction industry in the months ahead, the fact that the value of design contracts dipped into negative territory in June for the first time in more than two years is something of a concern.”
Key June ABI highlights:
- Regional averages: South (55.5), West (54.1), Northeast (51.8), Midwest (48.2)
- Sector index breakdown: multi-family residential (57.9), institutional (52.7), mixed practice (51.0), commercial / industrial (50.3)
- Project inquiries index: 58.6
- Design contracts index: 49.7
- 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
| Jul 30, 2013
Top Healthcare Sector Architecture Firms [2013 Giants 300 Report]
HDR, HKS, Cannon top Building Design+Construction's 2013 ranking of the largest healthcare architecture and architecture/engineering firms in the U.S.
| Jul 26, 2013
HDR acquires Sharon Greene + Associates
HDR Engineering, Inc. has acquired the business and assets of Sharon Greene + Associates, a firm specializing in transportation economics and financial analysis with offices in California and Denver.
| Jul 26, 2013
How biomimicry inspired the design of the San Francisco Museum at the Mint
When the city was founded in the 19th century, the San Francisco Bay’s edge and marshland area were just a few hundred feet from where the historic Old Mint building sits today. HOK's design team suggested a design idea that incorporates lessons from the local biome while creating new ways to collect and store water.
| Jul 25, 2013
3 office design strategies for creating happy, productive workers
Office spaces that promote focus, balance, and choice are the ones that will improve employee experience, enhance performance, and drive innovation, according to Gensler's 2013 U.S. Workplace Survey.
| Jul 25, 2013
How can I help you?: The evolution of call center design
Call centers typically bring to mind an image of crowded rows of stressed-out employees who are usually receiving calls from people with a problem or placing calls to people that aren’t thrilled to hear from them. But the nature of the business is changing; telemarketing isn’t what it used to be.
| Jul 25, 2013
First look: Studio Gang's residential/dining commons for University of Chicago
The University of Chicago will build a $148 million residence hall and dining commons designed by Studio Gang Architects, tentatively slated for completion in 2016.
| Jul 25, 2013
Resilience: the hallmark of a successful practice
The key to a firm’s future success has less to do with avoiding trouble than bouncing back from it.
| Jul 25, 2013
ACEEE presents the 2013 Champions of Energy Efficiency in Industry Awards
The American Council for an Energy-Efficient Economy (ACEEE) presented four Champion of Energy Efficiency Awards last night at its Summer Study on Energy Efficiency in Industry.
| Jul 24, 2013
Architecture Billings Index dips slightly in June, but demand for design services remains positive
All building sectors are seeing an increase in demand for architectural services, according to AIA's Architecture Billings Index for June.
| Jul 23, 2013
Paul Bertram to speak at ACEEE Summer Study on Energy Efficiency
Paul Bertram, FCSI, CDT, LEED AP and director of environment and sustainability for Kingspan Insulated Panels N.A., will present a white paper during the American Council for an Energy Efficient Economy (ACEEE) 2013 Summer Study on Energy Efficiency in Industry.
