Dive Brief:
- The Architectural Billings Index rose to 53.7 in September, up from 49.1 in August, the American Institute of Architects reported Wednesday.
- The new projects inquiry index, however, fell to 61.0 from a score of 61.8 in August. Regionally, the South saw the highest index score, at 54.5, followed by the Midwest, at 54.2, and the West, at 51.7. The Northeast's score came in at a disappointing 43.7.
- Within sectors of the index, mixed practiced scored the highest, at 52.6, followed by institutional, at 51.5, commercial/industrial, at 50.9, and multi-family residential, at 49.5.
Dive Insight:
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. Any index score above 50 signals a rise in billings.
September's positive results were a welcome reprieve after two consecutive months of ABI declines. Last month, the AIA reported a drop in the ABI from 54.7 to 49.1 between July and August. The index has now grown in six of the nine months this year.
"Aside from uneven demand for design services in the Northeast, all regions and project sectors are in good shape," said AIA Chief Economist Kermit Baker.
Baker said factors holding the industry back from even stronger growth include the labor shortage and building material costs. According to an AGC survey, 86% of construction firms reported difficulty in filling construction positions.
