On the heels of consecutive months of decreasing demand for design services, the Architecture Billings Index (ABI) has returned to positive territory.
The American Institute of Architects (AIA) reported that the May ABI score was 52.6, up sharply from a mark of 49.6 in April. This score reflects an increase in design activity (any score above 50 indicates an increase in billings). The new projects inquiry index was 63.2, up from the reading of 59.1 the previous month.
The AIA has added a new indicator measuring the trends in new design contracts at architecture firms that can provide a strong signal of the direction of future architecture billings. The score for design contracts in May was 52.5.
“Volatility continues to be the watchword in the design and construction markets, with firms in some regions of the country, and serving some sectors of the industry, reporting strong growth, while others are indicating continued weakness,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “However, overall, it appears that activity has recovered from the winter slump, and design professions should see more positive than negative numbers in the coming months.”
Key May ABI highlights:
- Regional averages: South (58.1), Midwest (51.3), Northeast (47.6) , West (46.9)
- Sector index breakdown: multi-family residential (58.2), commercial / industrial (53.6), mixed practice (50.4), institutional (47.3)
- Project inquiries index: 63.2
- Design contracts index: 52.5
The regional and sector categories are calculated as a 3-month moving average, whereas the national index, design contracts and inquiries are monthly numbers.
Related Stories
Office Buildings | Jan 21, 2016
Nike reveals design, first images of planned 3.2 million-sf expansion to its world headquarters
The expansion looks to combine design elements inspired by human movement, speed, and the strength and energy of competition.
Market Data | Jan 20, 2016
Architecture Billings Index ends year on positive note
While volatility persists, architecture firms reported healthy performance for 2015.
Architects | Jan 18, 2016
EHDD’s Monterey Bay Aquarium wins AIA Twenty-five Year Award
The aquarium set new technical standards for the building type, which still influence today, such as the flow-through seawater-based heat pump system, naturalistic exhibitions, and corrosion protection.
Architects | Jan 15, 2016
Best in Architecture: 18 projects named AIA Institute Honor Award winners
Morphosis' Perot Museum and Studio Gang's WMS Boathouse are among the projects to win AIA's highest honor for architecture.
| Jan 14, 2016
How to succeed with EIFS: exterior insulation and finish systems
This AIA CES Discovery course discusses the six elements of an EIFS wall assembly; common EIFS failures and how to prevent them; and EIFS and sustainability.
Market Data | Jan 13, 2016
Morgan Stanley bucks gloom and doom, thinks U.S. economy has legs through 2020
Strong job growth and dwindling consumer debt give rise to hope.
Architects | Jan 13, 2016
‘Socially engaged’ architect Alejandro Aravena named 2016 Pritzker Architecture Prize Laureate
Known for his inventive social housing initiatives in his native Chile, Aravena epitomizes the revival of a more socially engaged architect, the Pritzker jury stated.
Architects | Jan 12, 2016
Dear Architecture: It's time to create a level field for female designers
If architecture took one moment to be introspective, it would discover appalling imbalances between the opportunities for women and men, as Perkins+Will's Vershaé Hite and Brittany Eaker-Kirkland wrote in an open letter.
Great Solutions | Jan 6, 2016
Shepley Bulfinch develops elegant design solution to address behavioral issues in emergency departments
ED scheme allows staff to isolate unruly patients and visitors in a secure area.
Market Data | Jan 5, 2016
Majority of AEC firms saw growth in 2015, remain optimistic for 2016: BD+C survey
By all indications, 2015 was another solid year for U.S. architecture, engineering, and construction firms.
