Following the first reversal into negative territory in ten months in April, the Architecture Billings Index has bounced back in May. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending.
The American Institute of Architects (AIA) reported the May ABI score was 52.9, up dramatically from a mark of 48.6 in April. This score reflects an increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 59.1, up slightly from the reading of 58.5 the previous month.
“This rebound is a good sign for the design and construction industry and hopefully means that April’s negative dip was a blip rather than a sign of challenging times to come,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “But there is a resounding sense of uncertainty in the marketplace – from clients to investors and an overall lack of confidence in the general economy – that is continuing to act as a governor on the business development engine for architecture firms.”
Key May ABI highlights:
- Regional averages: Northeast (53.7), West (52.1), South (50.9), Midwest (47.5)
- Sector index breakdown: multi-family residential (52.8), institutional (52.2), mixed practice (51.0), commercial / industrial (47.5)
- Project inquiries index: 59.1
The regional and sector categories are calculated as a 3-month moving average, whereas the index and inquiries are monthly numbers.
About the AIA Architecture Billings Index
The Architecture Billings Index (ABI), produced by the AIA Economics & Market Research Group, is a leading economic indicator that provides an approximately nine to twelve month glimpse into the future of nonresidential construction spending activity. The diffusion indexes contained in the full report are derived from a monthly “Work-on-the-Boards” survey that is sent to a panel of AIA member-owned firms. Participants are asked whether their billings increased, decreased, or stayed the same in the month that just ended as compared to the prior month, and the results are then compiled into the ABI. These monthly results are also seasonally adjusted to allow for comparison to prior months. The monthly ABI index scores are centered around 50, with scores above 50 indicating an aggregate increase in billings, and scores below 50 indicating a decline. The regional and sector data are formulated using a three-month moving average. More information on the ABI and the analysis of its relationship to construction activity can be found in the White Paper Architecture Billings as a Leading Indicator of Construction: Analysis of the Relationship Between a Billings Index and Construction Spending on the AIA web site.
About The American Institute of Architects
Founded in 1857, members of the American Institute of Architects consistently work to create more valuable, healthy, secure, and sustainable buildings, neighborhoods, and communities. Through nearly 300 state and local chapters, the AIA advocates for public policies that promote economic vitality and public well being. Members adhere to a code of ethics and conduct to ensure the highest professional standards. The AIA provides members with tools and resources to assist them in their careers and business as well as engaging civic and government leaders, and the public to find solutions to pressing issues facing our communities, institutions, nation and world. Visit www.aia.org.
Related Stories
K-12 Schools | Apr 1, 2022
Charleston County’s award-winning career and technical education high school
BD+C Executive Editor Rob Cassidy talks with the team behind the award-winning Cooper River Center for Advanced Studies, a Career|Technical Education high school in Charleston County, S.C.
Modular Building | Mar 31, 2022
Rick Murdock’s dream multifamily housing factory
Modular housing leader Rick Murdock had a vision: Why not use robotic systems to automate the production of affordable modular housing? Now that vision is a reality.
Multifamily Housing | Mar 29, 2022
Here’s why the U.S. needs more ‘TOD’ housing
Transit-oriented developments help address the housing affordability issue that many cities and suburbs are facing.
Contractors | Mar 28, 2022
Amid supply chain woes, building teams employ extreme procurement measures
Project teams are looking to eliminate much of the guesswork around product availability and price inflation by employing early bulk-purchasing measures for entire building projects.
Reconstruction & Renovation | Mar 28, 2022
Is your firm a reconstruction sector giant?
Is your firm active in the U.S. building reconstruction, renovation, historic preservation, and adaptive reuse markets? We invite you to participate in BD+C's inaugural Reconstruction Market Research Report.
Legislation | Mar 28, 2022
LEED Platinum office tower faces millions in fines due to New York’s Local Law 97
One Bryant Park, also known as the Bank of America Tower, in Manhattan faces an estimated $2.4 million in annual fines when New York City’s York’s Local Law 97 goes into effect.
Healthcare Facilities | Mar 25, 2022
Health group converts bank building to drive-thru clinic
Edward-Elmhurst Health and JTS Architects had to get creative when turning an American Chartered Bank into a drive-thru clinic for outpatient testing and vaccinations.
Higher Education | Mar 24, 2022
Higher education sector sees 19 percent reduction in facilities investments
Colleges and universities face a growing backlog of capital needs and funding shortfalls, according to Gordian’s 2022 State of Facilities in Higher Education report.
Architects | Mar 16, 2022
James Hoban: Designer and builder of the White House
Stewart D. McLaurin, President of the White House Historical Association, chats with BD+C Executive Editor Robert Cassidy about James Hoban, the Irish draftsman and builder who convinced George Washington to let him design and build the White House.
Architects | Mar 16, 2022
Diébédo Francis Kéré named 2022 Pritzker Architecture Prize recipient
Diébédo Francis Kéré, architect, educator and social activist, has been selected as the 2022 Laureate of the Pritzker Architecture Prize, announced Tom Pritzker, Chairman of The Hyatt Foundation, which sponsors the award that is regarded internationally as architecture’s highest honor.
