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. Â This score reflects an increase in design activity (any score above 50 indicates an increase in billings). Â 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. Â 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
Architects | Jan 5, 2016
Potential vs. credential: How men and women differ in career progress
Recent research suggests that women face yet another career impediment: the confidence gap.
Architects | Dec 17, 2015
Capturing utilization and activity data in the workplace
While utilization is an important metric to inform how frequently a space is used, it’s important to consider activity data.
Architects | Dec 17, 2015
Four winners named in NYC sidewalk shed competition
Firms in the Construction Shed Design Competition made designs that are simple to build and use readily-available materials.
Architects | Dec 16, 2015
Lohan Anderson to close, join Wight & Co.
Dirk Lohan, Floyd Anderson and eight others will be hired by the Illinois-based Wight & Co. next month.
Architects | Dec 16, 2015
Architects create commission for diversity advancement
The 20-member group will assess recent data, set a plan of action, and report on results to the AIA Board of Directors.
Architects | Dec 15, 2015
ULI names Lord Richard Rogers the 2015 J.C. Nichols Prize winner
Rogers, Founder of Rogers Stirk Harbour + Partners, works on projects that “shine a spotlight on the challenges that people in urban areas are facing."
Market Data | Dec 15, 2015
AIA: Architecture Billings Index hits another bump
Business conditions show continued strength in South and West regions. Â
Architects | Dec 14, 2015
New LEGO line lets builders construct iconic skylines
New York City, Berlin, and Venice are featured in the Architecture Skyline Collection.
Architects | Dec 14, 2015
Date named for announcement of 2016 Laureate of the Pritzker Architecture Prize
The Laureate will be named the morning of January 13.
Architects | Dec 9, 2015
Architecture firms Cooper Carry and The Johnson Studio merge
The combination is expected to bolster each firm’s hospitality-related services.Â