Yes, the rumors are true—the Architecture Billings Index (ABI) is in positive territory for the second straight month. That’s right, the second straight month. After the ABI posted a solid 52.6 in May there was no telling what could happen next. Would it go up? Would it go down? Would it maybe even stay the same? It was anyone’s guess. Today, those questions were answered and what we got was even more good news. In June, the ABI posting jumped to 53.5 in June. And that’s not all, folks.
The new projects inquiry index did some climbing of its own—moving from 63.2 to 66.4. So what’s to account for this blockbuster summer? “The recent surge in both design contracts and general inquiries for new projects by prospective clients is indicative of a sustainable strengthening across the construction marketplace,” AIA Chief Economist Kermit Baker, said in a statement. “With the first positive reading since last summer in billings at institutional firms, it appears that design activity for all major segments of the building industry is growing. The challenge now for architecture firms seems to be finding the right balance for staffing needs to meet increasing demand.”
To the data!
By region, the Midwest led the pack with a score of 56.3 followed by the South (53.9) and the Northeast (51.1), and the West (48.7). Any score above 50 signifies an increase in billings, but you know that by now. By sector, multi-family residential (57.7) and mixed-use practice (53.8) had the best month. They edged ahead of commercial/industrial (53.1), and institutional, which eeked a positive score of 50.2. All good news. The design contracts index, the new metric on the block, was also in positive territory at 55.7.
See you here same time next month.