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
| Mar 3, 2014
5 ways to gain clients you actually like
Gaining more clients is one thing. Gaining more clients that you actually like is something else entirely. Here are some tips to perfect the art of attracting and retaining clients that you enjoy working with.
| Mar 3, 2014
Engineering and construction CEOs are cautiously optimistic about the global economy, says PwC
Firm leaders remain leery about the availability of skilled workers, the state of government debt and deficits, and rising material prices, according to PwC’s 2014 Global CEO Survey.
| Mar 1, 2014
Dramatic fractal roof highlights SOM's new Mumbai airport terminal [slideshow]
The terminal merges new technology and traditional regional architecture, notably in the fractal roof canopy that runs throughout the terminal.
| Feb 28, 2014
Six finalists selected in design competition for Canadian Holocaust monument
David Adjaye and Daniel Libeskind are among the finalists for the National Holocaust Monument, planned near the Canadian War Museum in Ottawa.
| Feb 27, 2014
Gensler reveals 44 design trends for the next decade
The 82-page report covers dozens of emerging trends in healthcare, commercial office, hospitality, tall buildings, and more.
| Feb 27, 2014
Target converts former prison dump into latest big-box store
Target's new San Rafael, Calif., location was built on the site of the former San Quentin prison dump.
| Feb 27, 2014
Open or private offices? It depends on the business plan
Open layouts are grabbing headlines as a hallmark of the new workplace—think the Google campus or Facebook's headquarters. And for smaller-scale operations, open designs are often lauded for being less expensive than private office plans. But does that mean all offices should have an open layout?
| Feb 27, 2014
3 reasons to apply computational fluid dynamics on your next project
From right-sizing mechanical systems to understanding the impact of design alternatives, CFD offers a host of benefits for the Building Team.
| Feb 27, 2014
12 facts about heat-treated glass: Why stronger isn’t always better
Glass is heat-treated for two reasons: the first is to increase its strength to resist external stresses such as wind and snow loads, or thermal loads caused by the sun’s energy. The second is to temper glass so that it meets safety glazing requirements defined by applicable codes or federal standards.
| Feb 27, 2014
Metal Construction Association introduces two Environmental Product Declarations
Two Environmental Product Declarations (EPD), one for Metal Composite Material Panels and one for Roll Formed Steel Panels for Roofs and Walls, are now available free of charge from the Metal Construction Association (MCA) on its website.
