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
| Aug 23, 2011
Acoustical design education model
Pass this exam and earn 1.0 AIA/CES Discovery learning units. You must go to www.BDCnetwork.com/EnhancedAcousticalDesign to take this exam.
| Aug 19, 2011
Thought Leader: Boyd R. Zoccola, chair and chief elected officer of BOMA International
Boyd R. Zoccola is Chair and Chief Elected Officer of BOMA International. A BOMA member since 1994, he has served on the Executive, Finance, Investment, and Medical/Healthcare Facilities Committees. An Indiana Real Estate Principal Broker and a board member of the Real Estate Round Table, he is Executive Vice President of Hokanson Companies, Inc., of Indianapolis, and has been involved in the development of $600 million worth of real estate. On a volunteer basis, Zoccola was president of Horizon House and a board member of Girls, Inc. He holds a BA in biology from Indiana University.
| Aug 19, 2011
How and why AEC professionals choose flooring systems
Design and construction professionals who completed our flooring survey had strong opinions about their preferred flooring type.
| Aug 19, 2011
Underfloor air distribution, how to get the details right
Our experts provide solid advice on the correct way to design and construct underfloor air distribution systems, to yield significant energy savings.
| Aug 19, 2011
Enhanced acoustical design
Ambient noise levels in some facility types are trending up and becoming a barrier to clear communication between building occupants.
| Jul 22, 2011
The Right Platform for IPD
Workstations for successful integrated project delivery, a white paper by Dell and BD+C.
| Jul 22, 2011
High-performance windows and doors
Learning objectives After reading this article, you should be able to: Understand issues of thermal performance and energy efficiency in relation to window and door systems; describe optimal detailing of the window-wall interface and how it contributes to building performance, sustainability, and occupant well-being; understand how durability contributes to sustainable windows/doors; and list sustainable O&M requirements for window and door systems.
| Jul 21, 2011
Falling Architecture Billings Index reflects decrease in design demands
This months Architecture Billings Index (ABI), provided by the American Institute of Architects, is almost a full point lower than last month’s reported score. June’s reading of 47.2 was short of the required 50 to achieve billings increases, making July’s reading of 46.3 an unwelcome sign of market tidings.
