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
| Sep 24, 2012
Reed Construction completes Lafarge headquarters in Chicago
Reed Construction was contracted to complete the full third floor build-out which included the construction of new open area work space, private offices, four conference rooms with videoconferencing capabilities and an executive conference boardroom.
| Sep 24, 2012
Chicago Lakeside shortlisted for the Sustainia Award
The “Lakeside Idea” is about bridging a brownfield industrial past to a green lifestyle future, from steel mill to innovation mill.
| Sep 24, 2012
$3.8-million athletic field and track opens in Glen Head, N.Y.
The complex also includes a new, one-story, multi-purpose building that serves as the main entry port to the athletic facilities.
| Sep 21, 2012
AAMA and WDMA release updated review and forecast that predicts industry trends
Significant volume is expected to return to the entry and interior door market as new construction demand is expected to grow at double-digit rates, outpacing remodeling and replacement activity as the housing market recovers.
| Sep 20, 2012
Mid-box retail study shows lack of available sites in Chicago
Existing supply is tight everywhere and almost non-existent in the most attractive zones.
| Sep 20, 2012
Forrester begins construction of freestanding cancer center in Montgomery County, Md.
The new 51,000-square-foot building will include two linear accelerator vaults for radiation equipment.
| Sep 19, 2012
Modular, LEED-Gold Certified Dormitory Accommodates Appalachian State University Growth
By using modular construction, the university was able to open a dorm a full year earlier than a similar dorm built at the same time with traditional construction.
| Sep 19, 2012
ABI back into positive territory
South continues to lead regions in demand for design services.
| Sep 19, 2012
HGA Architects & Engineers moves offices in San Francisco
HGA’s San Francisco office has grown by nearly 25% in the past two years, adding shared expertise to the 120-person California practice, which includes the Sacramento and Los Angeles offices.
| Sep 19, 2012
Sasaki opens office in Shanghai
Office supports firm’s present and future work in China, throughout Asia.
