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
Big Data | May 5, 2016
Demand for data integration technologies for buildings is expected to soar over the next decade
A Navigant Research report takes a deeper dive to examine where demand will be strongest by region and building type.
Urban Planning | May 4, 2016
Brookings report details how different industries innovate
In the new report, “How Firms Learn: Industry Specific Strategies for Urban Economies,” Brookings' Scott Andes examines how manufacturing and software services firms develop new products, processes, and ideas.
Architects | May 3, 2016
Study finds engineering, architecture among the best entry-level jobs
The results balanced immediate opportunity, job growth potential, and job hazards.
Architects | Apr 25, 2016
Notable architects design mini-golf holes for London Design Festival
Visionaries like Paul Smith, Mark Wallinger, and the late Zaha Hadid all helped in designing the course, which will be integrated into London’s Trafalgar Square.
University Buildings | Apr 25, 2016
New University of Calgary research center features reconfigurable 'spine'
The heart of the Taylor Institute can be anything from a teaching lab to a 400-seat theater.
Architects | Apr 22, 2016
What leads to success in the density-driven workplace?
CallisonRTKL’s Kirill Pivovarov explores how densification can lead to increased productivity and innovation in the workplace.
Government Buildings | Apr 22, 2016
Public-private partnership used to fund Long Beach Civic Center Project
Arup served as a lead advisor and oversaw financial, commercial, real estate, design, engineering, and cost consulting.
High-rise Construction | Apr 20, 2016
OMA reveals designs for its first Tokyo skyscraper
The goal is for the Toranomon Hills Station Tower to transform its neighborhood and serve as a hub for international business.
Architects | Apr 20, 2016
Bill Hellmuth named HOK’s new CEO
Hellmuth has been HOK's President since 2005. The firm will be led by a design principal for the first time since 1990.
Libraries | Apr 18, 2016
Best in Library Design: AIA names seven projects 2016 Library Building Awards winners
Snøhetta’s Ryerson University student center and the Billings (Mont.) Public Library by Will Bruder+Partners highlight the seven winning projects.
