Narrow by location

Design Billings Increasing Entering Height of Construction Season

Economic

After beginning the year with a marginal decline, the Architecture Billings Index has posted three consecutive months of growth in design revenue at architecture firms. 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. The American Institute of Architects (AIA) reported the April ABI score was 50.9, down from a score of 54.3 in the previous month. This score still reflects an increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 60.2, up from a reading of 59.8 the previous month, while the new design contracts index increased from 52.3 to 53.2.

You can view this press release online here: https://www.aia.org/press-releases/90116-design-billings-increasing-entering-height-o

“Probably even better news for the construction outlook is that new project work coming into architecture firms has seen exceptionally strong growth so far this year,” said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. “In fact, new project activity has pushed up project backlogs at architecture firm to their highest level since the design market began its recovery earlier this decade.”

Key April ABI highlights:

•           Regional averages: South (55.3), Midwest (53.3), West (50.9), Northeast (50.7)

•           Sector index breakdown: institutional (54.0), mixed practice (53.4), commercial / industrial (52.4), multi-family residential (49.9)

•           Project inquiries index: 60.2

•           Design contracts index: 53.2

 

The regional and sector categories are calculated as a 3-month moving average, whereas the national index, design contracts and inquiries are monthly numbers.

 

Q4 Economic Outlook Forecasts 7.9% Growth in Equipment and Software Investment in 2018

After solid growth in 2017, investment in equipment and software should remain strong in 2018 and is projected... »

Emergency Declaration Permit Extensions for Florida Property Owners, Developers, and Builders

By Vivien Monaco, Burr Forman In the aftermath of Hurricane Michael, there will be many development projects delayed... »

August Architecture Firm Billings Rebound As Building Investment Spurt Continues

Architecture firm billings rebounded solidly in August, posting their eleventh consecutive month of growth, according to a report... »

ABC’s Construction Backlog Indicator Hits a New High in Second Quarter of 2018

Associated Builders and Contractors reports that its Construction Backlog Indicator expanded to a record 9.9 months during the... »

LEAVE YOUR COMMENT

Your email address will not be published. Required fields are marked *