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
| Jun 13, 2014
Gilbane Building Company names new president and chief operating officer
Gilbane Building company hires new president and COO
| Jun 13, 2014
First look: BIG's spiraling museum for watchmaker Audemars Piguet
The glass-and-steel pavilion's spiral structure acts as a storytelling device for the company's history.
| Jun 13, 2014
Grocery stores, restaurants make neighborhoods most desirable [infographic]
John Burns Real Estate Consulting ranks the top 25 housing amenities by generation, based on feedback from more than 20,000 home shoppers.
| Jun 12, 2014
Zaha Hadid's 'gravity defying' Issam Fares Institute opens in Beirut
The design builds upon the institute’s mission as a catalyst and connector between AUB, researchers and the global community.
| Jun 12, 2014
Tod Williams Billie Tsien Architects' design selected for new UCSC facility
The planned site is a natural landscape among redwood trees with views over Monterey Bay, a site that the architects have called “one of the most beautiful they have ever worked on.”
| Jun 12, 2014
Austrian university develops 'inflatable' concrete dome method
Constructing a concrete dome is a costly process, but this may change soon. A team from the Vienna University of Technology has developed a method that allows concrete domes to form with the use of air and steel cables instead of expensive, timber supporting structures.
| Jun 11, 2014
David Adjaye’s housing project in Sugar Hill nears completion
A new development in New York's historic Sugar Hill district nears completion, designed to be an icon for the neighborhood's rich history.
| Jun 11, 2014
Bill signing signals approval to revitalize New Orleans’ convention center corridor
A plan to revitalize New Orleans' Convention Center moves forward after Louisiana governor signs bill.
| Jun 11, 2014
5 ways Herman Miller's new office concept rethinks the traditional workplace
Today's technologies allow us to work anywhere. So why come to an office at all? Herman Miller has an answer.
| Jun 11, 2014
Koolhaas’ OMA teams with chemical company to study link between color and economy
Dutch company AkzoNobel is partnering with Rem Koolhaas' firm OMA to study how the application of colorful paints and coatings can affect a city's economic development.