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
Office Buildings | Dec 19, 2017
How do we measure human performance, and what does it mean for the workplace?
There are many new tools and methods that are beginning to look more comprehensively to evaluate organizational well-being.
Sports and Recreational Facilities | Dec 18, 2017
Canada’s newest funicular makes Edmonton’s largest green space more accessible
The incline elevator is located in downtown Edmonton and was publicly funded.
Sponsored | Building Team | Dec 12, 2017
3 tips to address the top causes of budget overruns
The most cited issues are communication breakdowns, inadequate fees for the work provided, and unrealistic deadlines or schedules.
Multifamily Housing | Dec 12, 2017
Call for technical experts: Dog wash station design
The editors of Multifamily Design + Construction magazine need your expertise.
Government Buildings | Dec 11, 2017
Is this the world’s most humane prison?
The C.F. Møller-designed prison’s architecture supports the inmates’ and staff’s mental and physical well-being.
Architects | Dec 7, 2017
Snow Kreilich Architects receives the 2018 AIA Architecture Firm Award
Julie Snow, FAIA, founded the firm in Minneapolis in 1995, and later was joined by partner Matt Kreilich, AIA.
Architects | Dec 7, 2017
2018 AIA Gold Medal awarded to James Stewart Polshek
In 1963 Polshek started his first architecture firm, James Stewart Polshek Architect.
Architects | Dec 4, 2017
Architects to Congress: ‘You're making a terrible mistake’
House and Senate gut historic building credits and penalize architecture firms.
Architects | Dec 1, 2017
The third wave of urban waterfront development
The nature of waterfront redevelopment has been evolutionary, in the truest sense of the word.
Multifamily Housing | Nov 29, 2017
First Porsche, now Aston Martin: Sports car maker co-develops Miami condo tower *UPDATED
The 391-unit Aston Martin Residences will feature seven penthouses and a duplex penthouse, all with private pools and terraces overlooking Biscayne Bay.