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
Mass Timber | Jan 30, 2023
Net-positive, mass timber building will promote research on planetary well-being in Barcelona
ZGF Architects, along with Barcelona-based firms MIRAG and Double Twist, have designed a net-positive, mass timber center for research on planetary well-being. Located in Barcelona, the Mercat del Peix Research Center will bring together global experts in the experimental sciences, social sciences, and humanities to address challenges related to the future of the planet.
AEC Tech | Jan 27, 2023
Epic Games' latest foray into the AEC market and real estate industry
From architecture to real estate, the realm of computer-aided design hits new heights as more and more firms utilize the power of Epic Games’ Twinmotion and Unreal Engine.
University Buildings | Jan 27, 2023
Ozarks Technical Community College's advanced manufacturing center is first-of-a-kind in region
The new Robert W. Plaster Center for Advanced Manufacturing at Ozarks Technical Community College in Springfield, Mo., is a first-of-a-kind educational asset in the region. The 125,000-sf facility will educate and train a new generation in high tech, clean manufacturing and fabrication.
Mass Timber | Jan 27, 2023
How to set up your next mass timber construction project for success
XL Construction co-founder Dave Beck shares important preconstruction steps for designing and building mass timber buildings.
Sports and Recreational Facilities | Jan 26, 2023
Miami’s motorsport ‘country club’ to build sleek events center
Designed by renowned Italian design firm Pininfarina and with Revuelta as architect, The Event Campus at The Concours Club will be the first and only motorsport-based event campus located within minutes of a major metro area.
Student Housing | Jan 26, 2023
6 ways 'choice architecture' enhances student well-being in residence halls
The environments we build and inhabit shape our lives and the choices we make. NAC Architecture's Lauren Scranton shares six strategies for enhancing well-being in residence halls.
K-12 Schools | Jan 25, 2023
As gun incidents grow, schools have beefed up security significantly in recent years
Recently released federal data shows that U.S. schools have significantly raised security measures in recent years. About two-thirds of public schools now control access to school grounds—not just the building—up from about half in the 2017-18 school year.
AEC Tech Innovation | Jan 24, 2023
ConTech investment weathered last year’s shaky economy
Investment in construction technology (ConTech) hit $5.38 billion last year (less than a 1% falloff compared to 2021) from 228 deals, according to CEMEX Ventures’ estimates. The firm announced its top 50 construction technology startups of 2023.
Sports and Recreational Facilities | Jan 24, 2023
Nashville boasts the largest soccer-specific stadium in the U.S. and Canada
At 30,105 seats and 530,000 sf, GEODIS Park, which opened in 2022, is the largest soccer-specific stadium in the U.S. and Canada. Created by design firms Populous and HASTINGS in collaboration with the Metro Nashville Sports Authority, GEODIS Park serves as the home of the Nashville Soccer Club as well as a venue for performances and events.
Concrete | Jan 24, 2023
Researchers investigate ancient Roman concrete to make durable, lower carbon mortar
Researchers have turned to an ancient Roman concrete recipe to develop more durable concrete that lasts for centuries and can potentially reduce the carbon impact of the built environment.
