The Architecture Billings Index Increases For Fourth Consecutive Month
A leading economic indicator of construction activity, the Architecture Billings Index (ABI) reflects the approximate nine to twelve month lag time between architecture billings and construction spending. The ABI for February indicates an increased demand for design services at 51.0, up slightly from January’s 50.9 reading. February marks the fourth consecutive month to see growth.
The commercial/industrial sector led the increase with a 55.1 score while the multi-family residential sector followed closely with a 53.3 index. The new projects inquiry index was the highest since July 2007 at 63.4, up from 61.2 in January. All regions scored above 50.0 besides the West at a level of 45.6. The Midwest scored the highest at 56.0, followed by the South (51.3) and Northeast (51.0).
“This is more good news for the design and construction industry that continues to see improving business conditions,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “The factors that are preventing a more accelerated recovery are persistent caution from clients to move ahead with new projects, and a continued difficulty in accessing financing for projects that developers have decided to pursue.”
Source: The American Institute of Architects