Led by growing demand for new schools, hospitals, cultural facilities, and municipal buildings, the Architecture Billings Index (ABI) increased in May following its second monthly drop this year.
The American Institute of Architects reported the May ABI score was 51.9, up from a mark of 48.8 in April. This score reflects an increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 61.5, up from a reading of 60.1 the previous month.
As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lead time between architecture billings and construction spending.
“As has been the case for the past several years, while the design and construction industry has been in a recovery phase, we continue to receive mixed signals on business conditions in the marketplace,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “Generally, the business climate is favorable, but there are still construction sectors and regions of the country that are struggling, producing the occasional backslide in the midst of what seems to be growing momentum for the entire industry.”
Key May ABI highlights:
• Regional averages: South (54.6), Midwest (52.3), West (49.9) Northeast (45.2)
• Sector index breakdown: institutional (55.2), mixed practice (52.5), commercial / industrial (48.3) multi-family residential (45.9)
• Project inquiries index: 61.5
• Design contracts index: 53.4
The regional and sector categories are calculated as a three-month moving average, whereas the national index, design contracts 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 12-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.
Related Stories
MFPRO+ New Projects | Aug 16, 2024
At 60 stories, the Paramount multifamily development will stand as Nashville’s tallest high rise
When complete, the 60-story Paramount building, at 750 feet high, will be the tallest high rise tower in Nashville, Tenn., surpassing the city’s current record holder, the 617-foot AT&T Building. The $390 million Paramount project recently launched condo sales after securing more than $230 million in construction financing.
Urban Planning | Aug 15, 2024
New York City begins first large-scale porous pavement installation
New York City is installing its first large-scale porous pavement installation along seven miles of roadway in Brooklyn. The project will keep 35 million gallons of stormwater out of the combined sewer system each year, according to a news release.
Urban Planning | Aug 15, 2024
The magic of L.A.’s Melrose Mile
Great streets are generally not initially curated or willed into being. Rather, they emerge organically from unintentional synergies of commercial, business, cultural and economic drivers. L.A.’s Melrose Avenue is a prime example.
Curtain Wall | Aug 15, 2024
7 steps to investigating curtain wall leaks
It is common for significant curtain wall leakage to involve multiple variables. Therefore, a comprehensive multi-faceted investigation is required to determine the origin of leakage, according to building enclosure consultants Richard Aeck and John A. Rudisill with Rimkus.
MFPRO+ News | Aug 14, 2024
Report outlines how Atlanta can collaborate with private sector to spur more housing construction
A report by an Urban Land Institute’s Advisory Services panel, commissioned by the city’s housing authority, Atlanta Housing (AH), offered ways the city could collaborate with developers to spur more housing construction.
Adaptive Reuse | Aug 14, 2024
KPF unveils design for repositioning of Norman Foster’s 8 Canada Square tower in London
8 Canada Square, a Norman Foster-designed office building that’s currently the global headquarters of HSBC Holdings, will have large sections of its façade removed to create landscaped terraces. The project, designed by KPF, will be the world’s largest transformation of an office tower into a sustainable mixed-use building.
Sustainability | Aug 14, 2024
World’s first TRUE Zero Waste for Construction-certified public project delivered in Calif.
The Contra Costa County Administration Building in Martinez, Calif., is the world’s first public project to achieve the zero-waste-focused TRUE Gold certification for construction. The TRUE Certification for Construction program, administered by Green Business Certification Inc. (GBCI), recognizes projects that achieve exceptional levels of waste reduction, reuse, and recycling.
Modular Building | Aug 13, 2024
Strategies for attainable housing design with modular construction
Urban, market-rate housing that lower-income workers can actually afford is one of our country’s biggest needs. For multifamily designers, this challenge presents several opportunities for creating housing that workers can afford on their salaries.
University Buildings | Aug 12, 2024
Planning for growing computer science programs
Driven by emerging AI developments and digital transformation in the business world, university computer science programs are projected to grow by nearly 15% by 2030.
Energy Efficiency | Aug 9, 2024
Artificial intelligence could help reduce energy consumption by as much as 40% by 2050
Artificial intelligence could help U.S. buildings to significantly reduce energy consumption and carbon emissions, according to a paper by researchers at the Lawrence Berkeley National Laboratory.
