ABI Shows Robust Conditions Ahead for Construction Industry

The latest Architecture Billings Index (ABI) points to a heightened level of demand for design services, with all geographic regions and building project sectors showing positive conditions, according to the American Institute of Architects (AIA).

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. AIA reported the September ABI score was 55.2, up from a mark of 53 in August. This score reflects an increase in design activity (any score above 50 indicates an increase in billings). The new projects inquiry index was 64.8, following a mark of 62.6 the previous month.

Click here for a video which provides a brief overview of recent ABI conditions from AIA Chief Economist Kermit Baker, Hon. AIA, Ph.D.

“Strong demand for apartment buildings and condominiums has been one of the main drivers in helping to keep the design and construction market afloat in recent years,” said Baker. “There continues to be a healthy market for those types of design projects, but the recently resurgent Institutional sector is leading to broader growth for the entire construction industry.”

The regional and sector categories are calculated as a three-month moving average, whereas the national index, design contracts and inquiries are monthly numbers.

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