Economy
ABI Shows Growth in May
Written by Sandy Williams
June 25, 2015
The Architecture Billings Index rose to 51.9 in May from 47.8 in April. The Index, which reflects the approximate nine to 12 month lead time between architecture billings and construction spending, showed an increase in demand for new schools, hospitals, cultural facilities and municipal buildings last month.
The ABI, published monthly by the American Institute for Architects (AIA), has fallen twice so far in 2015, and is now back in positive territory. Any score above 50 indicates an increase in billings for design services.
“As has been the case for the past several years, while the design and construction industry has been in a recovery phase, we continue to receive mixed signals on business conditions in the marketplace,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “Generally, the business climate is favorable, but there are still construction sectors and regions of the country that are struggling, producing the occasional backslide in the midst of what seems to be growing momentum for the entire industry.”
The ABI highlights are:
– Regional averages: South (54.6), Midwest (52.3), West (49.9) Northeast (45.2)
– Sector index breakdown: institutional (55.2), mixed practice (52.5), commercial / industrial (48.3) multi-family residential (45.9)
– Project inquiries index: 61.5
– Design contracts index: 53.4
Note: An interactive ABI Chart can be accessed by logging into the SMU website and visiting this page. A screenshot of the graphic is below.
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
US sets Section 232 tariffs on trucks and buses
Medium- and heavy-duty trucks (MHDV) and buses imported to the US will start being charged Section 232 tariffs beginning Nov. 1.
AMU: Consumer auto delinquencies: Warning sign for consumer health?
The Consumer Federation of America estimates rising total auto debt at a staggering $1.66 trillion, along with increasing repossessions and a sharp increase in delinquencies.
Beige Book: Regional market growth remains mostly flat
Economic growth in some US regions in September was offset by challenges in others, causing the market to appear largely unchanged overall, according to the Federal Reserve’s latest Beige Book report.
ISM September survey captures deepening manufacturing gloom
The Institute for Supply Management’s (ISM) latest monthly report on manufacturing reflects a bleak view of American industry in September.
Key industries concerned over government shutdown’s impact on steel, manufacturing
Trade groups cautioned that a prolonged shutdown could strain US industry.