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
| Nov 21, 2011
Mortenson and enXco partnership to build its 19th wind project
The 8,500 acres project will generate140 megawatts of wind power – enough energy to power approximately 39,000 homes.
| Nov 21, 2011
FDH Engineering acquires Energy Solutions
All ESI employees have been merged into FDH’s staff at its St. Louis office.
| Nov 18, 2011
Centre for Interactive Research on Sustainability opens
Designed to exceed LEED Platinum, the Centre for Interactive Research on Sustainability (CIRS) is one of the most innovative and high performance buildings in North America today, demonstrating leading-edge green building design products, technologies, and systems.
| Nov 17, 2011
SmithGroup changes name to SmithGroupJJR
SmithGroup and JJR join brands to become a single, multi-disciplinary company.
| Nov 17, 2011
Campus-wide energy-efficiency program aims to deliver $3.5 million in energy and operational savings
Merced College and Honeywell will use the school’s energy usage statistics to develop a course curriculum on sustainability, and raise awareness among students of the positive impact conservation practices contribute to the community.
| Nov 17, 2011
Hollister Construction Services renovating bank in Union City, N.J.
Project is part of a series of ground-up construction and renovation assignments.
| Nov 16, 2011
Project completion of BRAC 132, Office of the Chief Army Reserve Building, Ft. Belvoir, Va.
This fast-tracked, design-build project consists of a three-story, 88,470 sf administrative command building housing approximately 430 employees.
| Nov 16, 2011
Architecture Billings Index moves upward
The Architecture Billings Index climbed nearly three points in October.
| Nov 16, 2011
CRSI recommends return to inch-pound markings
The intention of this resolution is for all new rollings of reinforcing steel products to be marked with inch-pound bar markings no later than January 1st, 2014.
