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
Religious Facilities | Mar 23, 2015
Is nothing sacred? Seattle church to become a restaurant and ballroom
A Seattle-based real estate developer plans to convert a historic downtown building, which for more than a century has served as a church sanctuary, into a restaurant with ballroom space.
Government Buildings | Mar 23, 2015
SOM leads planning for Egypt’s new $45 billion capital city
To alleviate overcrowding and congestion in Cairo, the Egyptian government is building a new capital from scratch.
BIM and Information Technology | Mar 23, 2015
Skanska hosts three-week 'hackathon' to find architect for Seattle tower development
Searching for a nimble, collaborative design firm for its 2&U tower project in Seattle, the construction giant ditches the traditional RFQ/RFP process for a hackathon-inspired competition.
Healthcare Facilities | Mar 23, 2015
Can advanced elevator technology take vertical hospitals to the next level?
VOA's Douglas King recalls the Odyssey project and ponders vertical transportation in high-rise healthcare design.
Healthcare Facilities | Mar 22, 2015
New Joplin, Mo., hospital built to tornado-resistant standards
The new hospital features a window and frame system that can protect patients from winds of up to 250 mph.
Sports and Recreational Facilities | Mar 19, 2015
Populous design wins competition for UK's most sustainable arena
The live-concert venue will seat an audience of 12,000, which the firm says will be masked by “the atmosphere and intimacy of a 4,000-seat amphitheatre.”
Architects | Mar 18, 2015
Architecture Billings Index rises in February
The ABI score was 50.4 last month, up slightly from a mark of 49.9 in January. This score reflects a minor increase in design services, according to AIA.
Multifamily Housing | Mar 18, 2015
Prefabricated skycubes proposed with 'elastic' living apartments inside
The interiors for each unit are designed using an elastic living concept, where different spaces are created by sliding on tracks.
Architects | Mar 18, 2015
Boston selects finalists in resilient design competition
The competition asks for creative approaches for planning for a not-so-distant future Boston where higher sea levels and more frequent flooding will be real and critical issues to contend with.
Cultural Facilities | Mar 17, 2015
The High Line’s co-designer wins contract for The Underline in Miami
James Corner Field Operations will design the master plan for this 10-mile restoration project.