Economy

ABI Up 3 Points in May

June 18, 2014

Design service demand picked up in May according to the American Institute of Architects. The Architecture Billings Index (ABI) picked up 3 points to register 52.6 after two months of contraction. The new projects inquiry index moved up 4.1 points to 63.2. (A reading below 50 indicates contraction and a reading above 50 indicates an increase in design service billings.)

“Volatility continues to be the watchword in the design and construction markets, with firms in some regions of the country, and serving some sectors of the industry, reporting strong growth, while others are indicating continued weakness,” said American Institute of Architects (AIA) Chief Economist Kermit Baker, Hon. AIA, PhD. “However, overall, it appears that activity has recovered from the winter slump, and design professions should see more positive than negative numbers in the coming months.”

The AIA Billings Index is a key market indicator for residential and commercial construction projects which are heavy users of flat rolled steel products and important to the U.S. steel industry.

Regionally, the three month moving averages registered: South (58.1), Midwest (51.3), Northeast (47.6), and West (46.9).

By sector, the three month moving average for multi-family residential increased by 5.6 points to 58.2. Commercial/industrial registered 53.6, up 3.4 points. Mixed practice declined slightly to 50.4 while architectural billings for institutional construction remained in contraction at 47.3.

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{amchart id=”64″ AIA ABI Index}