Dive Brief:
- The Architectural Billings Index rose to 53.1 in May, up from April's score of 50.6, the American Institute of Architects reported Wednesday.
- Within the index, multifamily residential once again had the highest score at 53.7, followed by institutional at 53.0, commercial/industrial at 51.0 and mixed-practice at 51.0.
- The May score represents an increase in design services, as any mark above 50 indicates a rise in billings. May's new projects inquiry index grew to 60.1, but the design contracts index slipped to a score of 52.8.
Dive Insight:
May's score surged to its highest level in almost a year and has remained in positive territory for four consecutive months.
"Business conditions at design firms have hovered around the break-even rate for the better part of this year," AIA Chief Economist Kermit Baker said in a release. "Demand levels are solid across the board for all project types at the moment. Of particular note, the recent surge in design activity for institutional projects could be a harbinger of a new round of growth in the broader construction industry in the months ahead."
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 reports have been mixed this month, with spending dipping 1.8%, the Dodge Momentum Index rising 2.4%, and the backlog for the country's largest contractors hitting an all-time Construction Backlog Indicator (CBI) high of 12 months.
