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
Giants 400 | Jan 12, 2024
Top 10 Casino Architecture Firms for 2023
JCJ Architecture, HBG Design, Gensler, and WATG top BD+C's ranking of the nation's largest casino architecture and architecture engineering (AE) firms for 2023, as reported in the 2023 Giants 400 Report.
Senior Living Design | Jan 11, 2024
Designing for personal technology is crucial for senior living facilities
Today’s seniors are increasingly tech savvy. It isn’t enough to give senior living residents a pre-determined bundle of technology and assume that they’ll be satisfied.
Giants 400 | Jan 11, 2024
Top 40 Convention Center Architecture Firms for 2023
TVS, Populous, Arcadis North America, Gensler, and EUA top BD+C's ranking of the nation's largest convention center and event facility architecture and architecture engineering (AE) firms for 2023, as reported in the 2023 Giants 400 Report.
Architects | Jan 10, 2024
Award-winning civic design firm RossDrulisCusenbery joins DLR Group
DLR Group today announced the acquisition of Sonoma, California based civic and public safety design firm RossDrulisCusenbery (RDC). The addition of RDC adds focused design excellence of new building types to DLR Group’s global Justice+Civic studio.
Museums | Jan 8, 2024
Achieving an ideal visitor experience with the ADROIT approach
Alan Reed, FAIA, LEED AP, shares his strategy for crafting logical, significant visitor experiences: The ADROIT approach.
Designers | Jan 8, 2024
DLR Group adds executive leaders
DLR Group Chief Executive Officer Steven McKay, AIA, RIBA, announced new executive leaders for the 100% employee-owned, globally integrated design firm.
AEC Tech | Jan 8, 2024
What's driving the surge of digital transformation in AEC today?
For centuries, the AEC industry has clung to traditional methods and legacy processes—seated patterns that have bred resistance to change. This has made the adoption of new technologies a slow and hesitant process.
K-12 Schools | Jan 8, 2024
Video: Learn how DLR Group converted two big-box stores into an early education center
Learn how the North Kansas City (Mo.) School District and DLR Group adapted two big-box stores into a 115,000-sf early education center offering services for children with special needs.
Green | Jan 8, 2024
DOE releases RFI on developing national definition for a Zero Emissions Building
The Department of Energy released a Request for Information (RFI) for feedback from industry, academia, research laboratories, government agencies, and other stakeholders on a draft national definition for a Zero Emissions Building.
Codes and Standards | Jan 8, 2024
Australia to be first country to ban engineered stone countertops
In 2024, Australia will be the first country to ban engineered stone countertops. The ban came after a years-long campaign supported by doctors, trade unions, and workers over concerns that the material was causing increased silicosis cases among workers cutting and handling it.