Economy
Architecture Billings Index Leaps Higher in June
Written by Sandy Williams
July 23, 2015
The Architecture Billings Index jumped to 55.7 in June from a reading of 51.9 in May for the highest score since 2007. All design categories showed improvement except for multi-family construction which has been in a slowing trend so far in 2015. The new projects inquiry index rose to 63.4, from 61.5 the previous month.
Design activity was strongest in the Midwest and South. The West and Northeast were relatively flat, just above the neutral 50 score.
“The June numbers are likely showing some catch-up from slow growth earlier this year. This is the first month in 2015 that all regions are reporting positive business conditions and aside from the multi-family housing sector, all design project categories appear to be in good shape,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “The demand for new apartments and condominiums may have crested with index scores going down each month this year and reaching the lowest point since 2011.”
Key June ABI highlights:
• Regional averages: Midwest (57.2), South (54.9), West (50.7) Northeast (50.4)
• Sector index breakdown: institutional (59.1), mixed practice (54.7), commercial / industrial (51.6) multi-family residential (47.0)
• Project inquiries index: 63.4
• Design contracts index: 52.5
The ABI, published monthly by the American Institute of Architects, reflects the nine to twelve month lead time between architecture billings and nonresidential construction spending. A score above 50 indicates an increase in billings. The regional and sector categories are calculated as a 3-month moving average, whereas the national index, design contracts and inquiries are monthly numbers.
Below is a graph showing the history of the AIA Billings and Inquiries Index. You will need to view the graph on our website to use it’s interactive features, you can do so by clicking here. If you need assistance with either logging in or navigating the website, please contact our office at 800-432-3475 or info@SteelMarketUpdate.com.
Sandy Williams
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