Five consecutive months of gains in Architecture Billings Index

by David Anderson | July 29, 2016 7:46 am

The American Institute of Architecture’s (AIA’s) Architecture Billings Index (ABI) for the month of June fell slightly from 53 in May to 52. Photo © Bigstock.com/sursaki — The American Institute of Architecture’s (AIA’s) Architecture Billings Index (ABI) for the month of June fell slightly, but it was still an increase overall.
*Photo © Bigstock.com/sursaki*

June marked the fifth time this year Architecture Billings Index[1] (ABI) had increases with a score of 52 percent—down a point from May’s score of 53.

Any score above 50 signifies increase in billings, while anything below indicates a decline, according to the American Institute of Architects (AIA). Its ABI provides an approximate nine to 12-month glimpse into the future of nonresidential-construction spending activities.

“Demand for residential projects has surged this year, greatly exceeding the pace set in 2015,” said Kermit Baker, AIA chief economist. “This suggests strong future growth for housing in the coming year. While we expect to see 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.”

The regional and sector categories are calculated as a three-month moving average, whereas the national index, design contracts, and inquiries are monthly numbers. The South had the highest score of 55 percent, with the West right behind at 54. The Northeast had a count of 52 and the lowest was the Midwest, it was below 50.

Endnotes:

Architecture Billings Index: http://new.aia.org/pages/14906-abi-june-2016-firm-billings-increase-at-slower-pace

Source URL: https://www.constructionspecifier.com/fifth-consecutive-month-of-gains-in-architecture-billings-index/