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
Building Owners | Aug 23, 2023
Charles Pankow Foundation releases free project delivery selection tool for building owners, developers, and project teams
Building owners and project teams can use the new Building Owner Assessment Tool (BOAT) to better understand how an owner's decision-making profile impacts outcomes for different project delivery methods.
Transportation & Parking Facilities | Aug 23, 2023
California parking garage features wind-activated moving mural
A massive, colorful, moving mural creatively conceals a newly opened parking garage for a global technology company in Mountain View, Calif.
Giants 400 | Aug 22, 2023
Top 115 Architecture Engineering Firms for 2023
Stantec, HDR, Page, HOK, and Arcadis North America top the rankings of the nation's largest architecture engineering (AE) firms for nonresidential building and multifamily housing work, as reported in Building Design+Construction's 2023 Giants 400 Report.
Giants 400 | Aug 22, 2023
2023 Giants 400 Report: Ranking the nation's largest architecture, engineering, and construction firms
A record 552 AEC firms submitted data for BD+C's 2023 Giants 400 Report. The final report includes 137 rankings across 25 building sectors and specialty categories.
Giants 400 | Aug 22, 2023
Top 175 Architecture Firms for 2023
Gensler, HKS, Perkins&Will, Corgan, and Perkins Eastman top the rankings of the nation's largest architecture firms for nonresidential building and multifamily housing work, as reported in Building Design+Construction's 2023 Giants 400 Report.
Higher Education | Aug 22, 2023
How boldly uniting divergent disciplines boosts students’ career viability
CannonDesign's Charles Smith and Patricia Bou argue that spaces designed for interdisciplinary learning will help fuel a strong, resilient generation of students in an ever-changing economy.
Apartments | Aug 22, 2023
Key takeaways from RCLCO's 2023 apartment renter preferences study
Gregg Logan, Managing Director of real estate consulting firm RCLCO, reveals the highlights of RCLCO's new research study, “2023 Rental Consumer Preferences Report.” Logan speaks with BD+C's Robert Cassidy.
Shopping Centers | Aug 22, 2023
The mall of the future
There are three critical aspects of mall design that, through evolution, have proven to be instrumental in the staying power of a retail destination: parking, planning, and customer experience. This are crucial to the mall of the future.
Affordable Housing | Aug 21, 2023
Essential housing: What’s in a name?
For many in our communities, rising rents and increased demand for housing means they are only one paycheck away from being unhoused. It’s time to stop thinking of affordable housing as a handout and start calling it what it is: Essential Housing.
Healthcare Facilities | Aug 21, 2023
Sutter Health’s new surgical care center finishes three months early, $3 million under budget
Sutter Health’s Samaritan Court Ambulatory Care and Surgery Center (Samaritan Court), a three-story, 69,000 sf medical office building, was recently completed three months early and $3 million under budget, according to general contractor Skanska.