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
AEC Tech | Oct 28, 2020
Meet Jaibot, Hilti's new construction robot
The semi-autonomous robot is designed to assist MEP contractors with ceiling-drilling applications.
Hotel Facilities | Oct 27, 2020
Hotel construction pipeline dips 7% in Q3 2020
Hospitality developers continue to closely monitor the impact the coronavirus will have on travel demand, according to Lodging Econometrics.
Data Centers | Oct 26, 2020
Speed to market is biggest obstacle for burgeoning data center construction sector
Hyperscale and edge computing are driving growth in data center and mission critical facilities construction.
Adaptive Reuse | Oct 26, 2020
Mall property redevelopments could result in dramatic property value drops
Retail conversions to fulfillment centers, apartments, schools, or medical offices could cut values 60% to 90%.
Multifamily Housing | Oct 15, 2020
L.A., all the way
KFA Architecture has hitched its wagon to Los Angeles’s star for more than 40 years.
Architects | Oct 14, 2020
The Weekly Show: AI for building facade inspections; designing a world-class architecture firm
The October 15 episode of BD+C's "The Weekly" is available for viewing on demand.
Coronavirus | Oct 8, 2020
The Weekly show: Statue of Liberty Museum, emotional learning in K-12, LA's climate change vulnerability
The October 8 episode of BD+C's "The Weekly" is available for viewing on demand.
Architects | Oct 8, 2020
Gensler’s annual report chronicles the firm’s ‘transformation’
The firm positions itself as a leading voice for how building design plays a central role in meeting society’s evolving demands.
Smart Buildings | Oct 1, 2020
Smart buildings stand on good data
The coming disruption of owning and operating a building and how to stay ahead through BIM.
Architects | Oct 1, 2020
BIG imagines how we could live on the moon
The architecture firm has partnered with ICON on the project.