WASHINGTON, D.C. — The Architecture Billings Index (ABI) has increased in May following its second monthly drop this year. The ABI posted a score of 51.9, up from a mark of 48.8 in April. The score reflects an increase in design activity, with any score above 50 indicating an increase in billings. The increase in design activity was led by a growing demand for new schools, hospitals, cultural facilities and municipal buildings.
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.
“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,” says Kermit Baker, AIA’s chief economist. “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.”
The South region posted the highest three-month average ABI score (54.6) nationally, followed by the Midwest (52.3), West (49.9) and Northeast (45.2).
Among property types, institutional posted the highest three-month ABI score (55.2), followed by mixed-use (52.5), office/industrial (48.3) and multifamily (45.9). The regional and property sector scores are calculated as three-month moving averages, but the national index is reported as a monthly score.
— John Nelson