Steady Conditions Continue in Architecture Billings Index
The Architecture Billings Index (ABI) continues to reveal solid demand for nonresidential design activity, according to the American Institute of Architects (AIA).
The Architecture Billings Index (ABI) continues to reveal solid demand for nonresidential design activity, according to the American Institute of Architects (AIA).
AIA reported the April ABI rating was 52.7 (any score above 50 indicates an increase in billings), nearly identical to the 52.6 mark in March. Inquiries for new projects shot up a full two points to 63.8, up from 61.8 the previous month.
With an approximate nine to twelve month lag time between architecture billings and construction spending, and significant inquiry levels for new projects this news continues a forecast that remains favorable for the nonresidential construction market throughout 2007, according to AIA.
“We have had positive conditions all five months of the year so far,” says Kermit Baker, AIA chief economist. “After starting off with very high numbers, the Index has leveled off lately with sustained, moderate expansion. Despite the favorable economic forecast, there is still concern about inflation in energy, raw materials and labor costs.”
Key April ABI highlights include:
- Regional averages: Midwest (54.9), West (54.0), South (52.2), Northeast (49.3)
- Sector index breakdown: institutional (56.1), commercial / industrial (55.2), residential (50.8), mixed practice (47.9)
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