Dive Brief:

• The Architectural Billings Index slipped to 50.6 in April, down from March's score of 51.9, the American Institute of Architects reported Wednesday. 
• Within the index, multifamily residential had the highest score at 53.7, followed by commercial/industrial at 52.0, mixed-practice at 50.0, and institutional at 49.0.
• Although April's score was slightly below March, it still signals a rise in design services, as any mark above 50 indicates an increase in billings. The new projects inquiry index fell to 56.9, but the design contracts index grew to 54.3.

Dive Insight:

Although the index dipped slightly in April, the AIA emphasized that it has held in positive territory for three consecutive months.

"Architects continue to report a wide range of business conditions, with unusually high variation in design activity across the major building categories," AIA Chief Economist Kermit Baker said in a release. "The strong growth in design contracts — the strongest score for this indicator since last summer — certainly suggests that firms will be reporting growth in billings over the next several months."

The ABI is an indicator of future construction spending — with a lead time of about nine to 12 months — as design services lead to new commercial projects.

Construction industry reports have been largely positive this month, with spending rising 0.3% and the Dodge Momentum Index increasing 0.6%. Construction activity is expected to pick up in 2016, with CMD predicting the dollar amount of year-over-year residential and nonresidential construction starts will increase by 7.4% this year. The data firm predicted the primary drivers of construction starts will be the nonresidential building categories of office buildings, transportation terminals and medical facilities.