According to the American Institute of Architects’ (AIA) Architecture Billings Index (ABI), the US saw 10 out of 12 months of increasing demand for design services in 2014, pointing to a healthy outlook for the nonresidential construction industry. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to 12 month lead time between architecture billings and construction spending. The AIA reported the December ABI score was 52.2, up from a mark of 50.9 in November. This score reflects an increase in design activity (any score above 50 indicates an increase in billings). The new projects inquiry index was 58.2, following a mark of 58.8 the previous month. Design contracts posted a mark of 49.9, after a 54.9 score in November.
“Business conditions continue to be the strongest at architecture firms in the South and the Western regions,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “Particularly encouraging is the continued solid upturn in design activity at institutional firms, since public sector facilities were the last nonresidential building project type to recover from the downturn.”