Economy

ABI: Strong Growth in Design Activity

Written by Sandy Williams


The American Institute of Architects’ Architecture Billings Index continued to show demand for design services with a seventh month of growth in August.The ABI gained 1.8 points last month for a solid score of 53.7. The new projects inquiry index rose to 62.5 from 59.5 and the new design contracts index slipped to 54.2 from 56.4

“The August results continue a string of very positive readings from the design professions, pointing to future healthy growth across the major construction sectors, as well as across the major regions of the country,” said AIA Chief Economist Kermit Baker. “Given the focus and discussions around the infrastructure needs of the nation, we expect strong growth in design activity for the coming months and years.”

Key August ABI highlights:

  • Regional averages: South (55.7), Northeast (54.3), Midwest (52.5), West (51.3)
  • Sector index breakdown: commercial / industrial (57.6), multi-family residential (53.8), mixed practice (52.5), institutional (50.1)

About the AIA Architecture Billings Index

The Architecture Billings Index (ABI), produced by the American Institute of Architects, is considered a leading economic indicator of construction activity, and reflects the approximate nine to twelve month lead time between architecture billings and construction spending. The regional and sector categories are calculated as a three-month moving average, whereas the national index, design contracts and inquiries are monthly numbers. The monthly ABI index scores are centered on the neutral mark of 50, with scores above 50 indicating growth in billings and scores below 50 indicating a decline.

Below is a graph showing the history of the Architecture Billings Index and Inquiries Index. You will need to view the graph on our website to use its interactive features; you can do so by clicking here. If you need assistance logging into or navigating the website, please contact our office at 800-432-3475 or info@SteelMarketUpdate.com.

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