By John Nelson
WASHINGTON, D.C. — Following a negative posting in both March and April, the Architecture Billings Index (ABI) posted a score of 52.6, a three-point jump from April’s 49.6 score. The score reflects an increase in design activity, with any score above 50 indicating an increase in billings.
A barometer of future non-residential construction activity, the ABI reflects the roughly nine- to 12-month lead time between architecture billings and construction spending. The index is produced by The American Institute of Architects (AIA) Economics & Market Research Group. The score is tabulated based on a monthly survey sent to a panel of AIA member-owned architecture firms.
“Volatility continues to be the watchword in the design and construction markets, with firms in some regions of the country reporting strong growth, while others are indicating continued weakness,” says Kermit Baker, AIA’s chief economist. “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.”
The South region posted the highest three-month average ABI score (58.1) nationally, followed by the Midwest (51.3), Northeast (47.6) and West (46.9).
Among property types, multifamily posted the highest three-month ABI score (58.2), followed by office/industrial (53.6), mixed-use (50.4) and institutional (47.3). The regional and property sector scores are calculated as three-month moving averages, but the national index is reported as a monthly score.
The AIA has also added a new indicator measuring the trends in new design contracts at architecture firms that signals the direction of future architecture billings. The score for design contracts in May was 52.5. Like the national ABI, the design contracts score is a monthly number.