Demand for architecture design services increased in October after contracting in September. The October Architecture Billings Index jumped to 51.7 from 49.1 the previous month, indicating a return to growth.
The new projects index gained more than one point to 60.2, while new design contracts posted a reading of 52.9, compared to 52.8 in September.
“As we enter the fourth quarter, there is enough design activity occurring that construction conditions should remain healthy moving through 2018,” said AIA Chief Economist Kermit Baker. “Extended strength in inquiries and new design contracts, along with balanced growth across the major building sectors, signals further gains throughout the construction industry.”
October ABI highlights:
Regional averages: Northeast (54.0), South (50.8), West (49.8), Midwest (49.0)
Sector index breakdown: commercial/industrial (51.2), mixed practice (50.7), multi-family residential (50.7), institutional (50.7)
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 12-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 Architecture Billings Index and Project 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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