The American Institute of Architects (AIA) has reported that the Architecture Billings Index (ABI) was positive in June for the fifth consecutive month. The June ABI score was 52.6, down from 53.1 the previous month, but still reflects an increase in design services, as any score above 50 indicates an increase in billings. The new projects inquiry index was 58.6, down from 60.1 the previous month.
“Demand for residential projects has surged this year, greatly exceeding the pace set in 2015. This suggests strong future growth for housing in the coming year,” said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. “While we expect to see a momentum continue for the overall design and construction industry in the months ahead, the fact that the value of design contracts dipped into negative territory in June for the first time in more than two years is something of a concern.”
- South (55.5)
- West (54.1)
- Northeast (51.8)
- Midwest (48.2)
Sector Index Breakdown
- Multi-family residential (57.9)
- Institutional (52.7)
- Mixed practice (51.0)
- Commercial / industrial (50.3
Key June ABI Highlights
- Project inquiries index: 58.6
- Design contracts index: 49.7
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. Regional and sector categories are calculated as a 3-month moving average, whereas the index and inquiries are monthly numbers. Any score above 50 reflects an increase in design services.
News via the American Institute of Architects (AIA).