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
| Oct 6, 2014
Moshe Safdie: Skyscrapers lead to erosion of urban connectivity
The 76-year-old architect sees skyscrapers and the privatization of public space to be the most problematic parts of modern city design.
| Oct 6, 2014
Houston's office construction is soaring
Houston has 19 million square feet of office space under construction, 54% more than a year ago, and its highest level since the booming 1980s, according to local news reports.
| Oct 6, 2014
Design activity at architecture firms finally back to pre-recession levels: AIA report
Gross billings at architecture firms have increased by 20% since 2011, according to a new report by the AIA.
| Oct 6, 2014
Retelling an old story: Why women are underrepresented in architecture
Women account for more than half of the U.S. population. But even with significant gains over the past 25 years, their numbers and positions among the ranks of practicing architects appear to have stalled.
| Oct 3, 2014
New survey tracks Americans’ attitudes towards transit use
A record 10.7 billion rides were taken on public transit in the United States last year. And a national survey of Americans finds that the speed, reliability, and cost, more than any other factors, determine people’s willingness and frequency of use.
| Oct 2, 2014
Effective use of building enclosure mock-ups within the commissioning process
Engineers from SSR offer advice and guidelines on implementing building enclosure mockups on any project.
| Oct 2, 2014
Budget busters: Report details 24 of the world's most obscenely over-budget construction projects
Montreal's Olympic Stadium and the Sydney Opera House are among the landmark projects to bust their budgets, according to a new interactive graph by Podio.
| Oct 1, 2014
Long-time competitors NAC|Architecture and Osborn merge
The combined firm has offices in California, Colorado, and Washington, and offers a wide range of services, from landscape architecture and graphic design to architecture and interior design.
| Oct 1, 2014
Philip Johnson's iconic Crystal Cathedral to be modernized, made 'intrinsically Catholic'
Johnson Fain and Rios Clementi Hale Studios have been commissioned by the Roman Catholic Diocese of Orange to upgrade the all-glass church in Garden Grove, Calif. The church acquired the property in 2012.
| Oct 1, 2014
4 trends shaping the future of data centers
As a designer of mission critical facilities, I’ve learned that it’s really difficult to build data centers to keep pace with technology, yet that’s a reality we face along with our clients, writes Gensler's Jackson Metcalf.