Construction Design Activity Spikes, Architecture Billings Index Finds
After three consecutive months of modest growth, the Architecture Billings Index (ABI), a leading economic indicator of construction activity, revealed a spike in design activity in May.
After three consecutive months of modest growth, the Architecture Billings Index (ABI), a leading economic indicator of construction activity, revealed a spike in design activity in May.
The Architecture Billings Index is derived from a monthly “Work-on-the-Boards” survey and produced by the
American Institute of Architects (AIA) Economics & Market Research Group.
The AIA reported the May ABI was 55.0, up from the 52.6 mark in April. With an approximate nine to twelve month lag time between architecture billings and construction spending, the forecast for the nonresidential construction market remains favorable throughout 2007 and into early 2008, according to the AIA.
This is second highest mark of the year behind January’s score of 57.9, according to the AIA. Activity in the Western U.S. is accelerating rapidly and all nonresidential construction sectors are experiencing an extended upturn.
Regional averages of the May ABI are: West 58.0; Northeast 53.6; South 53.3; and Midwest 51.8. Construction sector index breakdown: residential 55.2; commercial/industrial 54.7; mixed practice 54.3; and institutional 54.2.
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