Led by a still active multi-family housing market and sustained by solid levels of demand for new commercial and retail properties, the Architecture Billings Index has accelerated to its highest score in nearly a year.
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 May ABI score was 53.1, up sharply from the mark of 50.6 in the previous month. This score reflects an increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 60.1, up from a reading of 56.9 the previous month.
“Business conditions at design firms have hovered around the break-even rate for the better part of this year,” said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. “Demand levels are solid across the board for all project types at the moment. Of particular note, the recent surge in design activity for institutional projects could be a harbinger of a new round of growth in the broader construction industry in the months ahead.”
Key May ABI highlights:
- Regional averages: West (53.8), South (53.7), Northeast (51.2), Midwest (49.9)
- Sector index breakdown: multi-family residential (53.7), institutional (53.0), commercial/industrial (51.0), mixed practice (51.0),
- Project inquiries index: 60.1
- Design contracts index: 52.8
- 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
Architects | Mar 7, 2019
HED, Integrated Design Group to merge firms
ID has a strong reputation for data center design with locations in Boston in Dallas.
Architects | Mar 5, 2019
Arata Isozaki named 2019 Pritzker Architecture Prize Laureate
The Japanese architect, city planner, and theorist is known for his deep commitment to the “art of space” and transnational methodology.
Education Facilities | Feb 25, 2019
Fallingwater Institute’s summer residency programs have a new educational hub
Bohlin Cywinski Jackson designed the project.
Architects | Feb 14, 2019
Amazon will not build HQ2 in New York City
The tech giant walks away from a deal, succumbing to opposition over huge tax breaks.
Architects | Feb 12, 2019
The basics of building commissioning
As building system technology increases in complexity and sustainability remains at the forefront of design, the need for commissioning continues to rise. This is the first post in our series examining the basics, benefits and boundaries of building commissioning.
Architects | Jan 28, 2019
9 tech trends to track in 2019
Innovations in voice recognition, cognitive neuroscience, and biometrics are among the trending tech topics for 2019, according to CallisonRTKL's Kristin Tilley.
AEC Tech | Jan 9, 2019
Our robotic future: Assessing AI's impact on the AEC profession and the built environment
This is the first in a series by Lance Hosey, FAIA, on how automation is disrupting design and construction.
Architects | Dec 17, 2018
New toolkit helps architect achieve high-performance buildings
Architects can download a copy of the toolkit online.
Architects | Dec 13, 2018
Social media synergy: Revving up your AEC firm’s content engine
Design firms know that just having a website and a blog aren’t enough, but social media complicates how they communicate.
Architects | Dec 10, 2018
The art and science of drawing: Humanizing the design process with a bit of controlled mayhem
Hand drawing reveals a dimension beyond those available in a CAD drawing or digital rendering.
