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 | Dec 10, 2021
Trends in K-12 school design, with Dan Boggio and Melissa Turnbaugh of PBK
Dan Boggio and Melissa Turnbaugh of PBK, the largest K-12 design firm in the U.S., discuss the favorable market conditions and the latest trends in K-12 school design with BD+C's Rob Cassidy.
Architects | Dec 9, 2021
Hoffmann Architects wins Connecticut American Institute of Architects Justice, Equity, Diversity & Inclusion Award
The AIA Connecticut J.E.D.I. Challenge, launched in November 2020, offers member firms the opportunity to commit to actions in each of the Challenge areas.
Giants 400 | Dec 5, 2021
2021 Justice Facility Sector Giants: Top architecture, engineering, and construction firms in the U.S. justice facility/public safety sector
Turner Construction, DLR Group, AECOM, and Stantec top BD+C's rankings of the nation's largest architecture, engineering, and construction firms for justice facility/public safety buildings work, including correctional facilities, fire stations, jails, police stations, and prisons, as reported in the 2021 Giants 400 Report.
Giants 400 | Dec 3, 2021
2021 Hotel Sector Giants: Top architecture, engineering, and construction firms in the U.S. hospitality sector
Gensler, Jacobs, Suffolk Construction, and WATG top BD+C's rankings of the nation's largest hotel sector architecture, engineering, and construction firms, as reported in the 2021 Giants 400 Report.
Architects | Nov 29, 2021
LRK Names Tony Pellicciotti ‘Managing Principal’ of firm
Pellicciotti is one of LRK’s fourteen principals representing its markets in Memphis, Dallas, Philadelphia, Orlando/Celebration, New Orleans, Baton Rouge, Little Rock, and Princeton.
Architects | Nov 23, 2021
HMC names new Director of Design
James Krueger will oversee design and lead strategies to improve the impact of HMC’s work.
Giants 400 | Nov 20, 2021
2021 Parking Structure Giants: Top architecture, engineering, and construction firms in the U.S. parking structure sector
PGAL, PCL Construction, and Wiss, Janney, Elstner Associates top BD+C's rankings of the nation's largest parking structure sector architecture, engineering, and construction firms, as reported in the 2021 Giants 400 Report.
Giants 400 | Nov 20, 2021
Top 100 Design-Build Construction Firms for 2021
Clayco, Hensel Phelps, ARCO Construction Companies, Swinerton, and Ryan Companies US top the rankings of the nation's largest design-build construction firms for buildings construction work, according to BD+C's 2021 Giants 400 Report.
Giants 400 | Nov 19, 2021
2021 Cultural Facilities Giants: Top architecture, engineering, and construction firms in the U.S. cultural facilities sector
Gensler, AECOM, Buro Happold, and Arup top BD+C's rankings of the nation's largest cultural facilities sector architecture, engineering, and construction firms, as reported in the 2021 Giants 400 Report.
Giants 400 | Nov 19, 2021
2021 Convention Center Sector Giants: Top architecture, engineering, and construction firms in the U.S. convention and conference facilities sector
Populous, KPFF, Lendlease, and Turner Construction top BD+C's rankings of the nation's largest convention and conference facilities architecture, engineering, and construction firms, as reported in the 2021 Giants 400 Report.