AIA: Demand for architecture services 'solid across the board'

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.