There has been a recent moderation in the downturn in design services billings, but the Architecture Billings Index (ABI) reveals that an economic recovery has stalled. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to 12 month lag time between architecture billings and construction spending.
The American Institute of Architects (AIA) reported the May ABI rating was 42.9, nearly identical to the 42.8 mark in April. This score still indicates an overall decline in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry score was 55.2, the third straight month with a score in the mid-50s.
“The design and construction marketplace is extremely competitive right now,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “Prospective clients are casting a wider net causing numerous firms to bid for the same project, which is why the high level of inquiries is not necessarily translating into additional billings for project work at many firms.”
May ABI highlights:
Regional averages: Northeast (48.3), Midwest (41.5), South (41.3), West (39.4)
Sector index breakdown: mixed practice (44.5), commercial/industrial (43.1), institutional (38.0)
You might like:
- Webinar: Making Sense of Smart Buildings – 6 Steps to Maximize Investments
- Friday Funny: Super Bowl Time Warp
- Webinar: 6 Workplace Technology Predictions for 2016 – Are You Ready?
- Stadium Maintenance: Would Better Field Upkeep Have Kept The Rams In St. Louis?
- China’s First Green Skyscraper
- Winter Roof Maintenance: Ounce of Prevention Worth Pound of Cure
- Psychology Of The Office Space
- New Product Flash: Drone Detector By Drone Labs
- New Shade Fabric Boosts Energy Efficiency 50% At Automotive Facility
- Survey Reveals Dirty Little Restroom Secrets
- Question Of The Week: Utilizing Universal Design?
- FM Alert: Do You Know The School Janitor Of The Year?
- AHI White Papers Address Critical Issues Affecting Healthcare Facilities
- Zika Virus: 5 Things To Know, Plus Pest Control In Offices
- Waterproof Your Facility: Maintenance And Water Damage Prevention