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
| Dec 19, 2011
Summit Design+Build selected as GC for Chicago recon project
The 130,000 square foot building is being completely renovated.
| Dec 19, 2011
USGBC welcomes new board directors?
Board responsible for articulating and upholding the vision, values, mission of organization.
| Dec 19, 2011
Davis Construction breaks ground on new NIAID property
The new offices will total 490,998 square feet in a 10-story building with two wings of 25,000 square feet each.
| Dec 19, 2011
Survey: Job growth driving demand for office and industrial real estate in Southern California
Annual USC Lusk Center for Real Estate forecast reveals signs of slow market recovery.
| Dec 16, 2011
Goody Clancy-designed Informatics Building dedicated at Northern Kentucky University
The sustainable building solution, built for approximately $255-sf, features innovative materials and intelligent building systems that align with the mission of integration and collaboration.
| Dec 16, 2011
Stalco Construction converts Babylon, N.Y. Town Hall into history museum
The project converted the landmark structure listed on the National Register of Historic Places into the Town of Babylon History Museum at Old Town Hall.
| Dec 14, 2011
Belfer Research Building tops out in New York
Hundreds of construction trades people celebrate reaching the top of concrete structure for facility that will accelerate treatments and cures at world-renowned institution.
| Dec 14, 2011
Tyler Junior College and Sika Sarnafil team up to save energy
Tyler Junior College wanted a roofing system that wouldn’t need any attention for a long time.
| Dec 13, 2011
Lutron’s Commercial Experience Center awarded LEED Gold
LEED certification of the Lutron facility was based on a number of green design and construction features that positively impact the project itself and the broader community. These features include: optimization of energy performance through the use of lighting power, lighting controls and HVAC, plus the use of daylight.