AIA: Architecture Billings Index remains on solid footing

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.

The project team members include owner Lincoln Center for the Performing Arts, New York; design architect and interior designer of the restaurant, Diller Scofidio + Renfro, New York; executive architect, FXFOWLE, New York; and architect and interior designer of the film center, Rockwell Group, New York; structural engineer Arup (AISC Member), New York; and general contractor Turner Construction Company (AISC Member), New York.

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