January 10, 2007—After consecutive months of very modest growth, the Architecture Billings Index (ABI) saw a considerable jump in November to its second highest reading of the year. The commercial / industrial sector recorded its best mark of the decade and while still reporting weak billings, residential architecture firms showed encouraging signs by posting the highest score in four months, according to the American Institute of Architects (AIA).
With an approximate nine to twelve month lag time between architecture billings and construction spending, the ABI is a leading economic indicator of construction activity, and should translate into a high level of activity throughout 2007. The American AIA reported the November ABI rating was 57.5 up sharply from 51.1 in October (any score above 50 indicates an increase in billings).
“The nonresidential construction sector continues to see a high level of demand for design services,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “Even though there has been some deceleration in growth the previous two months, an uptick in billings of this size is noteworthy in portending sustained construction activity in the months ahead.”
For more information, see the AIA Web site.
