Economy
Architecture Firms Report High Demand for Design Services
Written by Sandy Williams
June 23, 2021
Demand for design services from architecture firms in the U.S. continued to be robust in May, said the American Institute of Architects. AIA’s Architecture Billings Index rose to 58.5 from 57.9 in April for one of the highest scores in the ABI’s 25-year history. The ABI has expanded every month since January.
The index for new design contracts rose to 63.2, a second consecutive record high. The new projects inquiry index was near a record high at 69.2, said AIA.
“Despite ballooning costs for construction materials and delivery delays, design activity is roaring back as more and more places reopen,” said AIA Chief Economist Kermit Baker. “However, concern over rising inflation and ongoing supply chain disruptions, as well as emerging labor shortages, could dampen the emerging construction recovery.”
The Architecture Billings Index is an economic indicator for nonresidential construction activity, with a lead time of approximately 9-12 months. A score above 50 indicates an increase in activity, and a score below 50 a decrease.
Key ABI highlights for May include:
- Regional averages: Midwest (63.4); South (59.0); West (57.4); Northeast (54.2)
- Sector index breakdown: commercial/industrial (60.6); multi-family residential (59.5); mixed practice (57.9); institutional (57.1)
Regional and sector scores are calculated as three-month averages.
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
Dodge Momentum Index surges in July
The Dodge Momentum Index (DMI) jumped 20.8% in July and is now up 27% year-to-date, according to the latest data released by Dodge Construction Network.
ISM: Manufacturing growth slows in July, hits 10-month low
US manufacturing activity slowed again in July to a 10-month low
CRU: Pushing EU imports back to 15% would be a big task
Several EU member states have published a ‘non-paper’ that puts forward proposals for a post-safeguard trade measure.
SMU Community Chat: Tariff-induced panic purchases, inflation, and calculating costs
Chief executive of the Institute for Supply Management (ISM), Tom Derry highlighted how reactive buying behavior has shifted the market into a quiet demand period. Derry presented ISM data during the weekly SMU community chat.
Architecture billings still sluggish despite project inquiry uptick
The Architecture Billings Index (ABI), a leading indicator for non-residential construction activity, declined for an eighth straight month in June.