Architectural Billings Index at Highest Mark Since 2007

Washington, DC, July 23, 2015—Paced by continued demand for projects such as new education and healthcare facilities, public safety and government buildings, the Architecture Billings Index (ABI) increased to 55.7 in June from May’s 51.9 mark.

This score reflects an increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 63.4, up from a reading of 61.5 the previous month.

As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lead time between architecture billings and construction spending.

“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.”

The June regional averages were as follows: midwest (57.2), south (54.9), west (50.7) and northeast (50.4).

And the sector breakdown revealed the following results, institutional (59.1), mixed practice (54.7), commercial / industrial (51.6) multi-family residential (47.0).

The project inquiries index was at 63.4, and the  design contracts index was 52.5.

Print the Article