February 5, 2007—Following a six point jump in November, the Architecture Billings Index (ABI) increased even more in December and finished 2006 with its highest score, reports the American Institute of Architects (AIA). The commercial/industrial sector recorded its highest reading in the history of the survey that originated in 1995, while scores in the institutional market also showed improvement.
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, says AIA. AIA reported the December ABI rating was 59.5 up from 57.4 in November (any score above 50 indicates an increase in billings, explains AIA).
“Despite a sluggish economy, there is no sign of a slowdown in nonresidential construction activity in the foreseeable future,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “This is very positive news for the construction industry and those markets affected by it because 2006 ended on a strong rebound, after trending down for most of the first 10 months.”
