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
Giants 400 | Jan 12, 2024
Top 10 Casino Architecture Firms for 2023
JCJ Architecture, HBG Design, Gensler, and WATG top BD+C's ranking of the nation's largest casino architecture and architecture engineering (AE) firms for 2023, as reported in the 2023 Giants 400 Report.
Senior Living Design | Jan 11, 2024
Designing for personal technology is crucial for senior living facilities
Today’s seniors are increasingly tech savvy. It isn’t enough to give senior living residents a pre-determined bundle of technology and assume that they’ll be satisfied.
Giants 400 | Jan 11, 2024
Top 40 Convention Center Architecture Firms for 2023
TVS, Populous, Arcadis North America, Gensler, and EUA top BD+C's ranking of the nation's largest convention center and event facility architecture and architecture engineering (AE) firms for 2023, as reported in the 2023 Giants 400 Report.
Architects | Jan 10, 2024
Award-winning civic design firm RossDrulisCusenbery joins DLR Group
DLR Group today announced the acquisition of Sonoma, California based civic and public safety design firm RossDrulisCusenbery (RDC). The addition of RDC adds focused design excellence of new building types to DLR Group’s global Justice+Civic studio.
Museums | Jan 8, 2024
Achieving an ideal visitor experience with the ADROIT approach
Alan Reed, FAIA, LEED AP, shares his strategy for crafting logical, significant visitor experiences: The ADROIT approach.
Designers | Jan 8, 2024
DLR Group adds executive leaders
DLR Group Chief Executive Officer Steven McKay, AIA, RIBA, announced new executive leaders for the 100% employee-owned, globally integrated design firm.
AEC Tech | Jan 8, 2024
What's driving the surge of digital transformation in AEC today?
For centuries, the AEC industry has clung to traditional methods and legacy processes—seated patterns that have bred resistance to change. This has made the adoption of new technologies a slow and hesitant process.
K-12 Schools | Jan 8, 2024
Video: Learn how DLR Group converted two big-box stores into an early education center
Learn how the North Kansas City (Mo.) School District and DLR Group adapted two big-box stores into a 115,000-sf early education center offering services for children with special needs.
Green | Jan 8, 2024
DOE releases RFI on developing national definition for a Zero Emissions Building
The Department of Energy released a Request for Information (RFI) for feedback from industry, academia, research laboratories, government agencies, and other stakeholders on a draft national definition for a Zero Emissions Building.
Codes and Standards | Jan 8, 2024
Australia to be first country to ban engineered stone countertops
In 2024, Australia will be the first country to ban engineered stone countertops. The ban came after a years-long campaign supported by doctors, trade unions, and workers over concerns that the material was causing increased silicosis cases among workers cutting and handling it.
